MMSI Stock Forecast & Price Target

Merit Medical Systems is well positioned for outperformance because its Q3 revenue of $416M and non-GAAP EPS of $1.12 both beat expectations, while organic growth remained broad-based across Foundational and Therapeutic products and across geographies. The company also demonstrated strong operating leverage, with non-GAAP operating margin expanding 160 bps to 21.3% despite gross-margin pressure, and it generated $53M of free cash flow in 3Q26 while keeping net leverage at 1.5x, supporting flexibility for further tuck-in acquisitions like Solo Pace. Its outlook is further strengthened by differentiated products and a mix shift toward higher-value Therapeutic offerings such as Cardiac Therapies, Endoscopy, and Oncology, which helped lift full-year revenue and EPS guidance to $1.635B-$1.642B and $4.33-$4.37.

Merit Medical Systems is facing a difficult setup because its expected revenue growth of 5% or lower is tied to slowing contributions from recent acquisitions, weaker new product launches, and further operating margin pressure. The company’s margin expansion has already slowed as pricing catch-up largely played out, while continued R&D and specialized salesforce investment, especially in Therapeutics, limit operating leverage despite adjusted op-ex falling only from 35.3% of sales in 2018 to 33.4% in 2025. In 2025A and 1H26A, growth decelerated across key areas, including OEM-Foundational and Renal Therapies, and issues such as WRAPSODY’s slow launch, China weakness, and likely muted upside from the 2027-2029 LRP support a cautious outlook.