Inari Medical ( NASDAQ: NARI ), a health equipment company focused on venous diseases, traded lower in the afternoon hours Tuesday as Truist launched its coverage with a Hold recommendation citing the rivalry in an otherwise attractive market opportunity for venous thromboembolism (VTE).
The firm projects NARI to post a ~17% CAGR for 2022 – 25E driven by expanding thrombectomy penetration in the underpenetrated $5B VTE market.
However, the absence of a turnaround in category adoption could limit the upside potential amid rising competition, the analysts led by Richard Newitter added.
Citing the company's rivals, such as Penumbra, Inc. ( PEN ), Abbott ( ABT ), and Boston Scientific ( BSX ), Truist argues that a survey indicated that competition could expand the market better than NARI.
With an $87 per share target on the stock, the analysts highlight the need for better conviction on company growth to assume a higher multiple for the stock.
Wall Street has remained bullish on Inari ( NARI ) stock, with an average rating of Strong Buy from analysts while Seeking Alpha Author ratings indicated a Buy. However, Seeking Alpha's quant system, which consistently beats the market, rated NARI as a Hold.
For further details see:
Inari initiated Hold at Truist; notes competition overshadows market potential