Teleflex (TFX) could see "muted" business through the completion of its planned separation in mid-2026, RBC Capital Martkets said in a Friday note.
On Thursday, Teleflex said its board approved a plan to separate the Urology, Acute Care, and OEM segments into a publicly traded company.
The company announced the separation the same day it released its Q4 results and issued guidance for 2025. Teleflex reported Q4 adjusted earnings from continuing operations of $3.89 per diluted share and $795.4 million in revenue, and guided 2025 adjusted EPS at $13.95 to $14.35.
According RBC, the Q4 top-line miss, disappointing 2025 revenue growth outlook, and business separation plan raise questions over Teleflex's current business state. The company also faces potential headwind from new US tariffs, the investment firm added.
"We view TFX's new strategic direction favorably, but believe it'll be sometime before it begins to drive shareholder value," RBC said.
RBC downgraded Teleflex to sector perform from outperform, with a lower price target of $155 from $220 previously.
Price: 134.98, Change: -4.13, Percent Change: -2.97
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