Best Growth
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis As of 07 October 2023
NYSE: TFX (Teleflex Incorporated)
- Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives.
- Teleflex Incorporated, headquartered in Wayne, Pennsylvania, is an American provider of specialty medical devices for a range of procedures in critical care and surgery.
- They sell these concentrates to bottlers, distributors, and licensed partners who produce and distribute the beverages. All of these help in generating recurring revenue for the company.
- Teleflex’s portfolio is diverse, with solutions in the fields of vascular and interventional access, surgical, anesthesia, cardiac care, urology, emergency medicine, and respiratory care.
- More than 14,000 Teleflex employees across the globe share the belief that our daily actions have a meaningful impact.
- Teleflex’s chief executive officer (CEO) is Liam J. Kelly; Kelly is also the company’s president and former chief operating officer.
- Top Shareholdings of Teleflex Incorporated (TFX):
| Holder | Shares | Date Reported | % Out | Value |
| T. Rowe Price Investment Management, Inc. | 85,56,799 | June 29, 2023 | 18.21% | 1,68,31,22,337 |
| Vanguard Group Inc | 54,35,884 | June 29, 2023 | 11.57% | 1,06,92,38,366 |
| Blackrock Inc. | 39,59,587 | June 29, 2023 | 8.43% | 77,88,50,750 |
| Janus Henderson Group PLC | 38,45,463 | June 29, 2023 | 8.18% | 75,64,02,560 |
| Morgan Stanley | 29,44,119 | June 29, 2023 | 6.27% | 57,91,08,198 |
| Wellington Management Group, LLP | 25,16,839 | June 29, 2023 | 5.36% | 49,50,62,223 |
| State Street Corporation | 23,61,882 | June 29, 2023 | 5.03% | 46,45,82,182 |
| Price (T.Rowe) Associates Inc | 20,05,780 | June 29, 2023 | 4.27% | 39,45,36,919 |
| Geode Capital Management, LLC | 9,93,524 | June 29, 2023 | 2.11% | 19,54,26,167 |
| Allspring Global Investments Holdings, LLC | 6,41,192 | June 29, 2023 | 1.36% | 12,61,22,464 |
What we think are PROs of Teleflex Incorporated (TFX):
- The company has consistently increased its annual sales by an average of 3.2% since 2018.
- TFX has allocated to expanding its operating assets which have grown by an average of 4.1% annually.
- TFX has consistently outperformed the market’s return on capital, which typically ranges from 10% to 12% on average in the long term, and its shareholders have also enjoyed this success.
- The global medical devices market is projected to grow from $495.46 billion in 2022 to $718.92 billion by 2029 at a CAGR of 5.5% in the forecast period, 2022-2029.
- Management projects forward sales at rates above historical ranges, indicating a potential upswing in growth.
What we think the RISKs are in Teleflex Incorporated (TFX):
- The company operates in a highly competitive market, in which a large number of companies participate, from historical manufacturers in the market to start-ups that specify their development on a line of products.
- Teleflex stock has produced almost zero returns while the S&P 500 has returned over +60% within the last 2 years.
- Teleflex Incorporated has generally performed well over the past few years and that attractive performance resumed this year after a high volatility.
- If it goes below its 200 EMA then it may fall very badly as per the technical patterns.
FUNDAMENTALS:
Dividend (Yield) = 1.36 (0.70%)
Market Cap. = 9.24B
Beta = 0.95
P/E Ratio = 24.96
52 wk Range = 182.65 – 265.76
Revenue = 2.90B
EPS = 7.85
- Technicals:
– It’s looking like the formation of a double bottom pattern on the monthly charts.
– Taking support at the past resistance zone.
– Monthly candle taking support at 200 days Exponential Moving Average.
– RSI (Weekly) recovering from lower levels, currently at 33 levels and making bullish divergence.
– Bouncing from Lower support, it may first bounce up to 273 into one flow.
– You can view the yellow circles of the support zone in the rectangular selected zone.
– Increasing in volume from last few months at its strong support levels.
Entry: 196
Target: 273 / 400
Stoploss: 170
Our Final Thought: Sometimes, with quality stocks like Teleflex, the true cost of holding onto them when they become overvalued isn’t necessarily a big and permanent price drop but rather a missed opportunity. Despite Teleflex’s earnings increasing by about 20% over time, the broader market significantly outperformed it, highlighting the risk of holding overpriced stocks. My recommended buy price, with a safety margin, for Teleflex is $196, assuming earnings continue as they have been. As on the technical chart there is a trend reversal from the 200 EMA zone or around 200 levels. Management is enthusiastic about the Urolift System’s progress in Japan, with expectations of continued revenue growth in 2024. If this system gains acceptance in China, coupled with strong sales growth in other segments, I believe the future free cash flow could support a valuation exceeding $300 per share.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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