Teleflex stock price target lowered to $130 by RBC Capital

Investing.com - RBC Capital has lowered its price target on Teleflex (NYSE:TFX) to $130.00 from $145.00 while maintaining a Sector Perform rating on the medical device company. The stock currently trades at $114.25, near its 52-week low, despite maintaining a solid financial health score according to InvestingPro data.

The firm cited investor hesitation following Teleflex’s previous guidance reduction related to tariffs and the company’s business separation plan, which is not expected until mid-2026. RBC noted that investor interest in Teleflex has been "lackluster" as it remains an event-driven stock with growth metrics that contrast unfavorably with peers in the sector. The company’s modest revenue growth of 0.29% over the last twelve months reflects these challenges, though it has maintained dividend payments for an impressive 49 consecutive years.

RBC Capital believes both the planned business separation and the recently closed Biotronik acquisition are "prudent" strategic moves. The analyst firm indicated there is a pathway to 6% growth for RemainCo, but this growth won’t materialize until after the separation is completed in mid-2026.

The price target adjustment reflects "market multiple and sentiment around the stock," with RBC adjusting its 2026 target multiples to approximately 2.0x EV/Sales, 6.5x EV/EBITDA, and 8.0x P/E, down from previous multiples of 2.4x, 7.0x, and 10.0x respectively.

RBC’s discounted cash flow valuation for Teleflex stands at $173, up from its previous DCF value of $152, though the firm remains on the sidelines regarding the stock, suggesting "there could be an opportunity in 1H’26E."

In other recent news, Teleflex Incorporated has completed its acquisition of Biotronik’s Vascular Intervention business for €760 million. This acquisition, finalized earlier than anticipated, is expected to significantly bolster Teleflex’s interventional access offerings and expand its presence in the peripheral intervention market. The company projects the acquired assets to generate €177 million ($204 million) in revenue for the second half of 2025, with anticipated annual revenue growth of 6% or more starting in 2026.

Additionally, Teleflex reported its Q1 2025 earnings, which fell short of analyst expectations, posting an EPS of $2.91 against a forecast of $2.95, and revenue of $700.7 million, below the anticipated $705.99 million. The company’s earnings call highlighted ongoing challenges, including a 5% year-over-year revenue decline. Despite these results, Teleflex remains focused on its strategic initiatives, including the planned separation into two entities, RemainCo and NewCo, expected to be completed in mid-2026.

Moreover, Needham has maintained a Hold rating on Teleflex stock following the Biotronik acquisition, noting the positive adjustments in revenue and EPS forecasts for 2025 and 2026. The firm cited the upcoming business separation as a reason for maintaining the current rating, as it anticipates more clarity on revenue growth rates post-separation. Teleflex also completed a $300 million share repurchase program, reflecting its commitment to enhancing shareholder value.

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