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Valued at a market cap of $11.4 billion, Teleflex Incorporated (TFX) is a leading provider of single-use medical devices for critical care and surgical procedures. The Pennsylvania-based company leverages its expertise in vascular access, interventional cardiology, anesthesia, and urology to maintain a strong market presence, serving a broad customer base.
Shares of this surgical equipment maker have underperformed the broader market over the past 52 weeks. TFX has risen 12.2% during this period, contrasting with the S&P 500 Index's ($SPX) robust rally of 26.1%. In 2024, TFX shares are down nearly 3%, compared to SPX's 17.2% gain on a YTD basis.
Zooming in further, TFX has slightly lagged behind the US Medical Devices iShares ETF's (IHI) gains of 12.3% over the past 52 weeks and has also fallen short of IHI's 8% rise on a YTD basis.
Teleflex has underperformed due to significant product recalls, including issues with dialysis intervention devices and Iso-Gard Filter S, which disrupted operations and sales. However, despite missing revenue estimates, the stock soared 6.8% on Aug. 1 after reporting a Q2 profit of $3.42 per share, beating estimates and raising its 2024 profit forecast due to strong demand for its medical devices amid increased surgical procedures. The announcement of a $500 million share repurchase program further bolstered investor confidence.
For the current fiscal year, ending in December, analysts expect TFX's EPS to grow 3.3% year over year to $13.97. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
The consensus rating among the 14 analysts covering the stock is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, three “Moderate Buys,” and seven “Holds.”
This configuration is slightly more bullish than three months ago, with three “Strong Buy” ratings on the stock.
On Aug. 5, Truist analyst Richard Newitter raised Teleflex's price target to $247 while maintaining a “Hold” rating, citing improved constant-currency revenue growth driven by strong organic performance and anticipated share gains from Getinge's IABP pump following an FDA advisory.
The mean price target of $265.25 represents a premium of just 9.6% to TFX's current levels. The Street-high price target of $290 implies a potential upside of 19.9% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
