This medical device stock has several catalysts, says bullish analyst

Teleflex company (NYSE:TFX) in the first quarter benefited from growth in the intervention segment and other favorable factors.

According to Piper Sandler, UroLift’s in-office sales could bottom out at $49 million in 2024, and franchising will be “less of a drag on revenue” by 2025.

The Teleflex Analyst: Matt O’Brien upgraded Teleflex shares from Neutral to Overweight while increasing his price target from $205 to $245.

The Teleflex Thesis: UroLift’s sales, which have kept the company’s shares from trading in recent quarters, are expected to plateau in the second or third quarter of this year, O’Brien said in an update note.

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Getinge, the company’s only competitor in the IABP market, “faces significant regulatory issues related to the production and sale of products, potentially providing Teleflex with approximately $170 million in annual revenue,” the analyst wrote.

He added that the effects of this phenomenon could be felt in 2025, causing revenue and profit growth of around 100-200 basis points.

“We continue to receive good feedback on Barrigel, which TFX acquired last year, and we believe sales of this product could grow by more than 20% within a few years,” O’Brien added.

TFX Price Action: At the time of publication on Monday, Teleflex shares were up 1.7% to $213.92.

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