Wall Street analysts downgrade Teleflex on challenging growth outlook

Investing.com -- Teleflex faced multiple downgrades from investment banks on Friday after the company reported disappointing fourth-quarter earnings, weak 2025 guidance, and announced plans to split into two publicly traded entities by mid-2026.

Analysts cited concerns over slowing growth, operational uncertainties, and near-term headwinds impacting the company’s performance.

Citizens downgraded Teleflex (NYSE: TFX) to Market Perform from Market Outperform, noting that revenue for the fourth quarter missed expectations by $18 million, and 2025 guidance came in below consensus.

"Top-line year-over-year growth will remain muted in 2025 due to three potentially temporal issues that aggregate to $100 million in lower sales and incremental FX headwinds ($55 million)," Citizens analysts stated.

They also highlighted uncertainties surrounding the planned spinoff, saying, "While it makes sense strategically and may deliver solid financial returns, we do not have specific details to evaluate that transaction thoroughly at this point."

Raymond James also lowered its rating to Market Perform, citing concerns over slowing fundamentals, particularly in the company’s Urolift business.

"We overstayed our welcome with this stock, as we were stubbornly patient in thinking that Barrigel would help Urolift sales. Stabilization in Urolift is further out," the firm noted.

RBC Capital downgraded Teleflex to Sector Perform, lowering the price target to $155 from $220, pointing to the company’s underwhelming 2025 revenue growth forecast of just 1-2% year-over-year, excluding foreign exchange impacts.

"Today's update raises several questions on the current state of the business until the separation," RBC stated.

Piper Sandler moved the stock to Neutral, emphasizing the uncertainty surrounding the planned spinoff and internal investments needed for future growth.

"Spinoffs are rarely beneficial for the stock during this period of disruption, and we simply see too many unknowns to stay constructive now," analysts wrote, lowering their price target to $140.

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