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Investing.com - Needham has reiterated its Hold rating on Teleflex (NYSE:TFX), currently trading near its 52-week low at $116.67, following the company’s completed acquisition of Biotronik’s Vascular Intervention business. According to InvestingPro analysis, the medical device company maintains a GOOD financial health score and appears undervalued based on its Fair Value metrics.
The transaction, which closed on Monday, July 1, has prompted Needham to update its financial model for the medical device company to reflect the acquisition’s impact.
Needham has raised its revenue estimates for Teleflex for both 2025 and 2026 to account for the additional revenue expected from the Biotronik vascular business.
The firm also increased its earnings per share (EPS) forecasts for 2025 and 2026, citing accretion from the deal as the primary factor for the upward revision.
Despite these positive adjustments to the financial outlook, Needham maintained its Hold rating on Teleflex stock, noting that approximately 12 months remain before the company completes its planned separation into two businesses (RemainCo and NewCo), which would provide greater visibility into the revenue growth rates of both entities.
In other recent news, Teleflex Incorporated has completed its acquisition of BIOTRONIK’s Vascular Intervention business for €760 million. This acquisition is expected to enhance Teleflex’s presence in the cath lab market and expand its suite of technologies. The company anticipates the newly acquired products to generate €177 million ($204 million) in revenue in the latter half of 2025, with a projected annual revenue growth of 6% or more starting in 2026. In its first quarter of 2025, Teleflex reported earnings per share (EPS) of $2.91, slightly below analyst expectations of $2.95, and revenue of $700.7 million, missing the forecasted $705.99 million. The company also announced plans to separate into two publicly traded entities and completed a $300 million share repurchase program. Additionally, Teleflex is exploring strategies to mitigate a projected $55 million tariff impact, which could pressure margins. Despite these challenges, the company remains focused on innovation and operational restructuring to drive growth.
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