On Wednesday, Canaccord Genuity (TSX:CF) maintained a Buy rating on Inari Medical Inc. shares (NASDAQ:NARI) but reduced the price target to $55 from the previous $75. The adjustment follows Inari Medical's announcement of its first-quarter results for 2024, which exceeded expectations.
The company reported quarterly revenue of $143.2 million, marking a 23.3% increase year over year. This performance surpassed both Canaccord Genuity and Street estimates.
Inari Medical also updated its full-year 2024 guidance, now anticipating revenue between $592.5 million and $602.5 million, reflecting a 20% to 22% year-over-year growth. This is an upward revision from the previously projected range of $580 million to $595 million.
Despite the strong start in the first quarter, the company's management has conservatively projected its revenue guidance for the remaining year, factoring in the easier comparisons for the second quarter of 2024.
The company's management highlighted its three primary growth drivers: Venous Thromboembolism (VTE) treatments, Emerging Therapies, and international expansion. They detailed plans for commercial expansion, deeper market penetration, and the anticipated release of strong clinical data later in the year. Moreover, Inari Medical is focusing on developing its product portfolio with new offerings such as VenaCor, Artix, and LimFlow, alongside plans for growth outside the United States.
Regarding the Corporate Integrity Agreement (CIA) with the Department of Justice (DOJ), Inari Medical's management stated that the company has not seen any commercial impact from the agreement and does not expect any in the future.
The company is continuing to cooperate with the DOJ on this matter. Canaccord Genuity reaffirms its confidence in Inari Medical's growth prospects and its Buy rating on the stock despite the lowered price target.
InvestingPro Insights
In light of Canaccord Genuity's maintained Buy rating and revised price target for Inari Medical Inc., real-time data from InvestingPro provides additional context for investors. With a market capitalization of $2.16 billion and a notable gross profit margin of 87.67% in the last twelve months as of Q1 2024, Inari Medical's financial health appears robust. The company's impressive gross profit margins are a testament to its operational efficiency and could be a key factor in its long-term growth potential.
Still, investors should be aware that Inari Medical is currently trading near its 52-week low, with its stock price having declined by 20.86% over the last month. This could signal a potential buying opportunity for those who believe in the company's growth drivers and international expansion plans. Moreover, the company's liquid assets exceeding its short-term obligations suggest a solid financial position to weather short-term market fluctuations.
For those looking for a deeper analysis, InvestingPro offers additional InvestingPro Tips, including insights on the company's anticipated net income drop and profitability expectations for the year. Interested investors can find more tips and a comprehensive analysis, including the InvestingPro Fair Value estimate of $32.68 for Inari Medical, at https://www.investing.com/pro/NARI. To further enrich your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With several more InvestingPro Tips available, investors can gain a more nuanced understanding of Inari Medical's financial outlook and market positioning.
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