Teleflex Inc (NYSE:TFX) stock fell 0.038% (As on July 3, 11:21:31 AM UTC-4, Source: Google Finance) after Matt O’Brien of Piper Sandler upgraded the company to Overweight from Neutral with a price target of $245, up from $205. While it may take another quarter or two, Teleflex’s Urolift sales in the physician’s office will start to bottom. UroLift sales in the physician’s office could bottom out at $49 million in 2024 and the franchise will be “less of a revenue headwind” from 2025, according to Piper Sandler. The company benefited in the first quarter from the surge in the interventional segment and other tailwinds. UroLift sales, which has prevented the stock from performing in recent quarters, should trough in the second or third quarter this year. The company’s sole competitor in the IABP market, Getinge is “facing significant regulatory issues with its production and sale of product, which makes about $170M worth of annual revenue potentially available to Teleflex,” the analyst wrote.
He added that the impact of this could be felt in 2025, adding about 100-200 basis points to revenue and earnings growth. “We continue to get good feedback on the Barrigel product that TFX acquired last year and believe this product could grow north of 20% for several years,” O’Brien further stated.
Meanwhile, in the quarter, the company drove strong execution with constant currency growth and margin expansion year-over-year, executed against the new product launch objectives, and remained on track with our integration of Palette Life Sciences AB.
The Company lowered its full year 2024 revenue growth outlook on a GAAP basis from a range of 3.60% to 4.60% to a range of 3.35% to 4.35%. On a constant currency basis, the Company maintained its full year 2024 revenue growth outlook of 3.75% to 4.75% year-over-year.
The Company raised its full year 2024 GAAP diluted earnings per share from continuing operations outlook from a range of $5.69 to $6.09 to a range of $6.87 to $7.22, representing a year-over-year decrease of 9.1% to 4.5%. The revised outlook reflects a change in estimate related to the impact of a non-cash pension settlement charge expected to be taken in 2024 in connection with the planned termination of the Teleflex Incorporated Retirement Income Plan. The Company raised the low end of its full year 2024 adjusted diluted earnings per share from continuing operations guidance from a range of $13.55 to $13.95 to a range of $13.60 to $13.95, representing growth of 0.6% to 3.2% year-over-year.