Needham analyst Michael Matson maintained a Buy rating on Teleflex Inc (NYSE: TFX) today and set a price target of $279. The company’s shares closed yesterday at $249.02.
Matson commented:
“TFX’s 2Q18 revenue missed while EPS beat consensus. Organic revenue growth (adjusted for selling days and a surgical product line exit) slowed to 3.2% in 2Q18 from 3.7% in 1Q18. Gross margin was up 120 bps Y/Y and operating margin was up 90 bps Y/Y driving ~21% EPS growth. Management cited distributor order timing around the 4th of July and issues at a supplier as the key reasons for the slower growth but is confident that organic growth will accelerate in 2H18 and it can maintain its constant currency revenue growth and EPS guidance. While the results are disappointing, they don’t change our thesis and we maintain our Buy rating.”
According to TipRanks.com, Matson is a 5-star analyst with an average return of 11.9% and a 63.0% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Teleflex Inc has an analyst consensus of Strong Buy, with a price target consensus of $296.67, representing a 19.1% upside. In a report released yesterday, Piper Jaffray also maintained a Buy rating on the stock with a $295 price target.
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Based on Teleflex Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $2.5 million. In comparison, last year the company had a net profit of $78 million.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. Most recently, in May 2018, Cameron Hicks, the VP, Global HR of TFX sold 2,000 shares for a total of $534,000.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Teleflex, Inc. provides medical technology products which enables healthcare providers to improve patient outcomes and enhance patient and provider safety. The company designs, develops, manufactures and supplies single-use medical devices used by hospitals and healthcare providers for common diagnostic and therapeutic procedures in critical care and surgical applications. It operates through the following business segments: Vascular North America, Interventional North America, Anesthesia North America, Surgical North America, Europe, the Middle East and Africa (EMEA), Asia and Original Equipment Manufacturer and Development Services (OEM). The Vascular North America segment products facilitate a variety of critical care therapies, including the administration of intravenous medications and other therapies and the measurement of blood pressure and taking of blood samples through a single puncture site. The Interventional North America segment is comprised of the North American component of Vascular Solutions business. The Anesthesia North America segment provides products for clinicians working primarily in emergency rooms, surgery and critical care settings. The Surgical North America segment products are predominantly comprised of single-use products, including ligation clips and closure products; appliers and sutures used in a variety of surgical procedures; access ports used in minimally invasive laparoscopic surgical procedures, including robotic surgery, and fluid management products used for chest drainage. The EMEA segment designs, manufactures and distributes medical devices primarily used in critical care, surgical applications and cardiac care and generally serves two end markets: hospitals and healthcare providers, and home health. The Asia segment designs, manufactures and distributes medical devices primarily used in critical care, surgical applications and cardiac care and generally serves hospitals and healthcare providers. The OEM segment designs, manufactures and supplies devices and instruments for other medical device manufacturers. Teleflex was founded in 1943 and is headquartered in Wayne, PA.
