Deutsche Bank Reaffirms Buy Rating for Inari Medical Inc. Despite Safety Concerns - Opportunity for Investors!
Deutsche Bank has reiterated its Buy rating and $68.00 price target for Inari Medical Inc. (NASDAQ:NARI) stock, despite recent safety concerns surrounding two of the company's products used in venous clot removal. The analyst believes the market's reaction to these issues is an overreaction, presenting a unique opportunity for investors to buy into this medical technology company's stock.
Inari Medical's shares have experienced a 10% decline since last Thursday, underperforming when compared to Penumbra (NYSE:) and the broader market. The concerns are related to the ClotTriever XL catheter and the FlowSaver autologous blood return system.
The ClotTriever XL, designed for larger blood vessels, was the subject of a "Dear Doctor" letter issued on July 19th due to adverse events. The FDA classified the field action for ClotTriever XL as a Class I recall, but it was categorized as a correction rather than a withdrawal, indicating potential problems with usage rather than product design.
Despite some doctors reducing the use of the ClotTriever due to safety issues, many continue to use the product without changes. Inari Medical's management does not expect any revenue impact from the field action, even in the worst-case scenario.
In conclusion, Deutsche Bank's confidence in Inari Medical's growth potential suggests that the recent share price dip could be a strategic point for investment in the company.
In summary, despite safety concerns surrounding Inari Medical's products, Deutsche Bank remains bullish on the company's growth prospects. This presents an opportunity for investors to potentially benefit from the market's overreaction to the recent news.