Teleflex (TFX) stock was on the rise Wednesday after a bid to take the medical device company private was revealed. A news report claimed that private equity firms CVC Capital Partners and GTCR have submitted a joint bid that would take Teleflex private. The finer details of the deal, such as the price and timing, are still unknown.
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According to insiders, Teleflex’s management team is evaluating the offer from CVC Capital Partners and GTCR. However, they have warned that there is no guarantee that anything will come from this offer. These sources claimed that Teleflex may reject the offer or use it to attract similar bids from other companies.
The potential offer for Teleflex came at a time when the company was streamlining its business, including the sale of three units in December for $2.03 billion. Teleflex has also faced scrutiny from investors, including Irenic Capital Management, after it pushed back against calls for a sale of the company.
Teleflex Stock Movement Today
Teleflex stock was up 9.37% in pre-market trading on Wednesday, following a 5.46% fall yesterday. The shares have rallied 2.52% year-to-date but were still down 6.22% over the past 12 months.
TFX stock trading activity was muted this morning despite the news of a potential deal to take the company private. As of this writing, roughly 67,000 shares have changed hands, compared to a three-month average daily trading volume of about 745,000 shares.
Is Teleflex Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Teleflex is Moderate Buy, based on three Buy and five Hold ratings over the past three months. With that comes an average TFX stock price target of $135.75, representing a potential 8.82% upside for the shares.
