Teleflex: Strategic Uncertainty, Leadership Transition, and Slowing Growth Drive Sustained Underperform (Sell) Rating

Teleflex, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Travis Steed from Bank of America Securities maintained a Sell rating on the stock and has a $122.00 price target.

Travis Steed has given his Sell rating due to a combination of factors tied to both near-term performance and strategic uncertainty. Teleflex preannounced that full-year 2025 revenue will fall below its earlier projection, implying a sizable shortfall versus consensus expectations in the fourth quarter, driven mainly by weakness in NewCo businesses such as intra-aortic balloon pumps/catheters and delays in OEM orders. While the remaining core business is still expected to grow in the mid-single-digit range, Steed believes this growth will likely trend toward the lower end of that range based on recent softness. In addition, his 2026 model assumes only modest revenue growth and operating margin pressure for the RemainCo, leading to an initial 2026 EPS outlook in the mid-$9 range that does not appear compelling versus the current valuation and his price objective.

Travis Steed’s rating is also influenced by leadership transition and execution risk. The sudden CEO change, with an interim leader appointed while the board searches for a permanent replacement, adds uncertainty at a time when the company is undergoing a major portfolio transformation, including the planned divestiture of several businesses in the second half of 2026. Although the planned buyback funded by asset sales could provide some EPS support, Steed views this as difficult to forecast and expects management to guide conservatively without assuming the full repurchase authorization. Given the combination of lowered revenue expectations, margin and growth constraints in the near term, leadership changes, and a transition year in 2026 before the strategy is fully clarified, he continues to see an unfavorable risk/reward profile and maintains his Underperform (Sell) stance on Teleflex.

TFX’s price has also changed slightly for the past six months – from $119.680 to $110.010, which is a -8.08% drop .