Piper Jaffray analyst Matt O'Brien lowered his price target for Merit Medical Systems to $40 from $58 but says investors should start positions in the name at these levels. The stock is down almost 50% this year, with virtually all of that decline occurring since Q2 earnings, where the "downward spiral began" with management lowering margin and earnings expectations for the year, O'Brien tells investors in a research note. Further, CEO Fred Lampropoulos selling stock in the open market for personal reasons, "which has drawn the ire of investors," adds the analyst. However, O'Brien says Merit Medical is now "clearly undervalued" and keeps an Overweight rating on the name. The company's valuation is "one of the biggest disconnects in Med Tech," he says.