Teleflex Inc.

Currently, we project Teleflex's performance may remain somewhat uneven during the first half of 2021 but recovery in the second half to support the return to positive organic growth versus pre-COVID-19 sales. We expect reported revenue to increase about 10% in 2021, including the contribution from acquisitions the company made in late 2020 of about 2.5%. Due to the pandemic-related slowdown in elective procedures, the company's product mix in 2020 shifted toward lower-margin products and S&P Global Ratings-adjusted EBITDA margins declined 170 basis points (bps) to 27.4%. We expect that, with the recovery in the elective procedure volumes, Teleflex will restore EBITDA margins to about 29%. While Teleflex continues to demonstrate its significant M&A appetite, we believe management's track record

...We project COVID-19 pandemic hurdles will dissipate gradually over 2021 and enable more normalized operating performance as medical procedure volumes recover. Our base-case forecast assumes the pandemic impact on Teleflex Inc. will be largely limited to fiscal 2020 and the first half of 2021. However, we believe there remains high, albeit moderating, uncertainty about the evolution of the coronavirus pandemic and its economic effects. Vaccine production is ramping up and rollouts are gathering pace around the world. Widespread immunization, which will help pave the way for a return to more normal social and economic activity, looks to be achievable by most developed economies by the end of the third quarter. However, some emerging markets may not achieve widespread immunization until year-end or later. We use these assumptions about vaccine timing in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation...

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