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Valued at a market cap of $11.6 billion, Teleflex Incorporated (TFX) designs, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications. The Pennsylvania-based company markets and sells its products to hospitals and healthcare providers worldwide through direct sales force and distributors.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Teleflex fits this criterion perfectly. The company offers products and solutions for a wide range of areas, such as anesthesia, emergency medicine, and interventional cardiology. It is renowned for its trusted brands, which include Arrow, Barrigel, Deknatel, LMA, and Pilling.
Despite a nearly 5% pullback from its 52-week high of $257.85 reached in December last year, shares of this medical device manufacturer have gained 23.4% over the past three months, surpassing the broader Dow Jones Industrials Average’s ($DOWI) 7.2% return over the same time frame.
However, in the longer term, TFX stock is down 1.7% on a YTD basis, lagging behind DOWI’s 11.2% gains. Moreover, shares of TFX have gained 20.4% over the past 52 weeks, underperforming DOWI’s 23.3% returns over the same time frame.
Yet, TFX has been trading above its 50-day and 200-day moving averages since July, representing a bullish trend.
Teleflex’s underperformance over the past year was primarily driven by an uncertain macroeconomic environment marked by high oil prices and elevated interest rates coupled with significant product recalls by the company, including the recall of Iso-Gard Filter S filters in the U.S. However, despite missing revenue estimates, the stock climbed 6.8% on Aug. 1 following its Q2 earnings release as the company’s reported profit of $3.42 per share surpassed the Wall Street estimates. Teleflex’s raised full-year 2024 earnings outlook and announcement of a $500 million share repurchase program further enhanced investor confidence.
TFX has lagged behind its rival, Merit Medical Systems, Inc. (MMSI), which gained 43.6% over the past 52 weeks and 29.3% on a YTD basis.
Despite TFX’s underperformance relative to the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering the stock, and the mean price target of $265.25 suggests a premium of 8.3% to its current levels.
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.
