Teleflex On Accelerating Top-Line Growth Trajectory; Upgrading To Outperform

Accordingly, the firm upgraded its rating on the shares of Teleflex to Outperform and increased its price target from $227 to $266.

Analysts Richard Newitter and Ravi Misra said they now see a clearer pathway toward mid-single digit to high-single digit organic sales growth, with 6–7 percent, plus, organic sales growth expected by 2019 once both the Vascular Solutions, Inc. and Neotract deals turn organic.

Specifically, the analysts expect both the deals to add 2–3 percent to Teleflex's current 4–5 percent 2017 organic growth.

Leerink Swann noted that the company is good at executing on M&A integration, as it is into the habit of under-promising and over-delivering on initial synergy/sales target. The firm expressed excitement about the top-line acceleration's potential to transform the company into a high-single digit revenue grower in the out years.

Given that the company has guided to slight earnings per share dilution in 2017 and earnings per share neutrality in 2018 but gross and operating margin accretion, the firm said it sees at least 40 cents earnings per share accretion to its 2019 stand-alone earnings per share estimate of $10.75 for Teleflex or a pro-forma earnings per share estimate of $11.10.