Strong Earnings but Target Price Cut Leads to 8% Plunge in Medical Device Stocks

On May 1 in U.S. trading, Merit Medical Systems (MMSI) saw its shares tumble as much as 8.3% to $62.50, erasing about $287 million (roughly KRW 400 billion) from its market capitalization. Volume spiked past 1.95 million shares—well above average—and the company’s market cap now stands at approximately $3.7 billion (around KRW 5.2 trillion).

In its Q1 2026 earnings report released the previous day, the company posted revenue of $381.9 million, a 7% increase year-over-year, and non-GAAP EPS of $0.94, topping analysts’ high estimates. It also raised its full-year EPS guidance to a range of $4.01–$4.15. Nonetheless, major brokerages—including Needham, which cut its price target from $101 to $90—highlighted valuation concerns, triggering profit-taking amid a P/E ratio near 30x.

Headquartered in Utah, Merit Medical designs and manufactures medical devices for vascular access, drainage, embolization, tumor intervention and endoscopy procedures, supplying hospitals and physicians worldwide. Recently, the company has restructured its portfolio with the $140 million acquisition of View Point Medical (about KRW 200 billion) and the $28 million sale of its DualCap assets (around KRW 400 billion), sharpening its focus on high-growth oncology and endoscopy platforms.