Teleflex Inc.

Overview Key strengths Key risks Good scale and product diversity across seven business segments. Competition with products from larger companies such as Becton Dickinson&Co., Medtronic PLC, Boston Scientific Corp., and others. Mid-single-digit percent revenue growth driven by a high-margin innovative product pipeline. Downward pressure on margins due to inflationary environment. Solid track record of acquisition integration. Higher appetite for mergers and acquisition (M&A) business development activity compared with similarly rated peers. The diversification over multiple end markets and therapeutical areas allowed the company to withstand the disruption in the health care industry related to the COVID-19 pandemic over 2020-2021 as well as industry-wide headwinds stemming from supply chain, labor shortages, foreign exchange rates, and inflation with only a

...A key strength is Teleflex's product diversification over multiple end markets and therapeutical areas, and we estimate that its revenue will continue to grow organically in the mid-single-digit constant currency rate in the coming years, despite industry-wide headwinds. The diversification over multiple end markets and therapeutical areas allowed the company to withstand the disruption in the health care industry related to the COVID-19 pandemic over 2020-2021 as well as industry-wide headwinds stemming from supply chain, labor shortages, foreign exchange rates, and inflation with only a limited negative impact on its sales. We believe the company's portfolio has modest exposure to deferable procedures (primarily in its interventional urology segment) where the demand has not yet fully recovered. We estimate that the procedure volumes will continue returning to normal in 2023, and this segment will resume its growth. We also anticipate that Teleflex' other high-growth products (e.g. MANTA...

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