Truist Securities on Wednesday lowered its price target on Inari Medical Inc. (NASDAQ: NARI ) to $55 from $60 previously, while maintaining a Hold rating on the stock. The revision comes after Inari Medical released a second-quarter earnings report that, while showing modest revenue growth and an upward revision to its forecast, didn’t quite meet the lofty expectations expected for the quarter.
The company reported about 17% growth in its core U.S. venous thromboembolism (VTE) business, which was still slightly below the market average growth rate of about 20%, according to management. However, this figure is consistent with the first quarter’s growth rate and shows that its core business segment is stabilizing.
Inari Medical’s larger-than-expected operating loss could worry investors, especially at a time when profit trends for small and mid-sized companies are being closely watched. Nonetheless, management reiterated its commitment to achieving operating profitability by the second quarter of 2025.
In addition, the announcement of the unexpected transition of chief financial officer (CFO) at the same time as the profit results was announced was also interpreted as a step towards succession planning. The executive changes come as the company moves toward profitability.
Truist Securities reiterated its hold rating, signaling a neutral stance on Inari Medical stock, indicating that the firm advises investors to maintain their positions and refrain from further buying and selling for now.
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