Needham analyst Michael Matson has maintained their neutral stance on TFX stock, giving a Hold rating on March 3.
Michael Matson has given his Hold rating due to a combination of factors surrounding Teleflex’s current market position and future prospects. The company’s shares experienced a significant decline following the announcement of their fourth-quarter results for 2024, along with guidance for 2025 and news of an acquisition and subsequent break-up. Matson conducted a sum-of-parts analysis, evaluating the separate entities of RemainCo and NewCo, and estimated the company’s worth at approximately $166 per share.
Despite recognizing that Teleflex shares are likely undervalued, Matson remains cautious due to the lack of immediate catalysts that could drive the stock price higher. The uncertainty surrounding the growth rates of RemainCo and NewCo post-spin-off contributes to investor skepticism about the company’s valuation. With about 15 months remaining before the separation is finalized, Matson maintains a Hold rating, awaiting clearer insights into the revenue growth trajectories of the two businesses.
In another report released on March 3, Truist Financial also maintained a Hold rating on the stock with a $149.00 price target.
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