On Tuesday, Canaccord Genuity (TSX:CF) adjusted its stance on Inari Medical (TASE:PMCN) Inc. (NASDAQ: NARI) stock, downgrading it from Buy to Hold, while increasing the price target to $80.00, up from the previous target of $74.00.
The revision follows the announcement that Stryker Corporation (NYSE:SYK) has agreed to acquire Inari Medical for approximately $4.9 billion, or $80 per share in cash. This acquisition price represents a roughly 24% premium over Inari Medical's closing share price on Tuesday and is 61% higher than the opening price on the same day.
The stock has already shown remarkable momentum, posting a 27.33% return in the past week and trading near its 52-week high of $65.94.InvestingPro data reveals 13 additional key insights about Inari Medical's performance and valuation, available to subscribers.
Stryker's definitive agreement to purchase Inari Medical aims to enhance its product offerings by adding Inari's mechanical thrombectomy devices to its neurovascular portfolio. The integration is expected to provide Stryker with access to the annual total addressable market (TAM) for 900,000 venous thromboembolism (VTE) patients in the United States.
Mechanical thrombectomy is currently underutilized in this market but is increasingly being adopted as the standard of care. Inari's strong market position is reflected in its impressive 86.82% gross profit margins and robust revenue growth of 22.41% over the last twelve months.
Inari Medical's thrombectomy products have been widely accepted in the medical community due to successful clinical trials, leading to rapid adoption of its 510(k) approved devices by clinicians. The company primarily serves interventional radiologists, vascular surgeons, and interventional cardiologists, a customer base that does not overlap with Stryker's current neurovascular business, which is focused on neurosurgeons.
The acquisition is strategically significant for Stryker as it enters a new market segment. Inari Medical's products are expected to complement Stryker's existing offerings and potentially drive further growth within the company's neurovascular division.
The transaction is set to bring together Inari's innovative mechanical thrombectomy products with Stryker's established presence in the medical technology market. With a current market capitalization of $3.81 billion and operating with moderate debt levels, Inari brings a strong financial position to the merger.
For a comprehensive analysis of Inari Medical's financials and future prospects, access the detailed Pro Research Report available exclusively on InvestingPro.
In other recent news, Stryker Corporation and Inari Medical have announced a definitive agreement for Stryker's acquisition of Inari Medical for $80 per share. This strategic acquisition, valued at approximately $4.9 billion, is set to enhance Stryker's portfolio by incorporating Inari's strong position in the rapidly expanding venous thromboembolism (VTE) market.
Inari Medical recently reported a record Q3 revenue of $153.4 million, marking a 21% year-over-year increase, and raised its full-year revenue outlook to between $601.5 million and $604.5 million. Evercore ISI reiterated its Outperform rating for Stryker, with a $400.00 price target, pointing out the potential benefits of the acquisition.
However, the firm also noted that the deal could dilute Stryker's earnings per share by about 2%. Meanwhile, analyst firms Oppenheimer and Canaccord Genuity have given Inari an Outperform and Buy rating respectively.
Inari's ClotTriever Thrombectomy System for deep vein thrombosis has also received national reimbursement approval in Japan, further solidifying its market position. These are some of the latest developments for Inari Medical and Stryker.
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