KeyBanc Upgrades Teleflex (TFX) to Buy

KeyBanc upgraded Teleflex (NYSE: TFX) from Hold to Buy with a price target of $128.00. Analyst Matthew Mishan anticipates a sustained move higher.

"1) despite a fundamental outlook which has been improving, the stock has underperformed since our initiation on April 9, 2014, and valuation, which had previously been the basis for our HOLD rating, now appears more attractive; 2) there could be some near-term volatility around its earnings release; however, we view current 4Q estimates as achievable, and a potential guidance miss (not expecting one) due to FX or conservatism would likely set the stock up to be bought on weakness," said Mishan.

"3) its organic growth profile may be underappreciated, and recent datapoints support our view of likely share gains in vascular access; 4) margins appear to be directionally moving in the right direction and should soon begin to benefit from restructuring actions implemented last year; and 5) acquisitions have typically been a catalyst for shares, and we think it has both the ability and willingness to do another Vidacare/LMA type acquisition in the near term," he added.

For an analyst ratings summary and ratings history on Teleflex click here. For more ratings news on Teleflex click here.

Shares of Teleflex closed at $112.07 yesterday.

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