Discipline has been a good thing for Merit Medical (MMSI). This mid-sized med-tech has never had an issue with growth or product development, but the company hasn't had the best reputation for margin efficiency or wise capital allocation. With a new plan in place, and solid, consistent execution on that plan, things appear to be changing, and the shares have been doing well as a result.
There are definitely some worthwhile growth drivers here to watch. I like the opportunity with the SCOUT localization system and I'm looking forward to initial data on the WRAPSODY endovascular stent graft - a potential breakthrough device that could add around 10% to Merit's sales base (and at attractive margins). The shares anticipate at least some of this, though, and while I do see upside to around $80, a path to faster sales growth and/or stronger margins would be needed to unlock more value.
Read more here:
Merit Medical: Nothing Flashy, But Solid Execution Supports The Story
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