Inari initiated Hold at Truist; notes competition overshadows market potential

Sep. 13, 2022 12:56 PM ETInari Medical, Inc. (NARI)ABT, BSX, PENBy: Dulan Lokuwithana, SA News Editor

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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.

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