- RBC Capital Markets says that Teleflex Incorporated (NYSE:TFX) delivered a Q1 beat and maintained 2022 guidance.
- Despite that, the stock plunged as much as 11% in intra-day trading, driven by concerns around UroLift's growth trajectory implied in 2H FY22 and fx/ inflation headwinds to EPS.
- The analysts believe TFX's underlying business is tracking ahead of expectations, and they are comfortable at the mid-to-upper end of the 2022 revenue range.
- RBC has lowered the price target to $390 from $415 to reflect market multiples and maintain Outperform rating.
- Teleflex reported Q1 revenues of $641.7 million, up 1.2% Y/Y (+3.2% on a constant currency basis), beating the consensus of $633.97 million.
- Adjusted EPS of $2.88 beat the consensus of $2.75.
- It reiterated GAAP and constant currency revenue growth of 2.3% - 3.8% and 4.0% - 5.5%, respectively, with adjusted EPS of $13.70 - $14.30.
- Raymond James writes 1Q results were solid. UroLift beat the analyst consensus, but investors were likely looking for a bit more to help ease the steepness of the implied 2H ramp. Additionally, the FX guidance may have caused some angst.
- The analyst has changed the 2022 and 2023 estimates. Raymond James has lowered the price target from $380 to $355, with no change in Outperform rating.
- Price Action: TFX shares are down 2.50% at $288.12 during the market session on the last check Friday.
