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September 17, 2013
1 Min Read
Teleflex may be on the verge of significant growth, according to analysts at Barron's and The Street. While Teleflex built its engineering empire through the development of jet-turbine engines and automotive systems, the company has branched out into a variety of industries over the past decade. Over time, it shedded many of these divisions, turning into a pure medical device manufacturer.
After many acquisitions, the company now manufactures 44,000 unique medical devices. Areas of specialization include respiratory, anesthesia, urology and vascular access.
The Street recently upgraded the company's stock from "hold" to "buy" status, citing the company's solid revenue growth, recent stock performance, profit margins, and "reasonable debt levels."
In press releases, the company has shared information on its future growth strategy. In particular, bolt-on acquisitions, product introductions and price increases will be used to drive growth. On top of this, the company believes that improved production efficiencies and high-margin products could improve finances. According to the company, Teleflex hopes to achieves operating margins of 25%. As of now, it still has a long way to go: Its operating margins in the last quarter were 17%.
According to analysts, improvements in profitability over the next one to two years could lead to an increase in shareholder value. Some analysts have estimated that share prices at the company could rise by one-fifth over the next 18 months.
For its fiscal year, analysts forecast earnings of $187 million on total sales of $1.7 billion. For next year, analysts predict growth of 14%.
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