Deutsche Bank downgrades Tristel stock to Hold after 53% rally

Published 14/07/2025, 09:40
Deutsche Bank downgrades Tristel stock to Hold after 53% rally

Investing.com - Deutsche Bank (ETR:DBKGn) downgraded Tristel PLC (LON:TSTL) from Buy to Hold while raising its price target to GBP4.00 from GBP3.85, citing the stock’s strong recent performance.

The medical device company’s shares have rallied 53% since early April without any consensus estimate upgrades, validating Deutsche Bank’s previous thesis that the shares were undervalued.

Deutsche Bank notes that Tristel’s valuation has now reverted to a mid-teen EV/EBITDA multiple, which aligns with its historical mid-to-high teen range, and a 4% free cash flow yield.

The bank considers the current valuation fair, given ongoing uncertainty around Tristel’s U.S. expansion plans and the company’s ability to return its core business to double-digit growth.

Tristel is scheduled to release a trading update and hold a Capital Markets Day on July 29, which could provide further clarity on its strategic direction.

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