If companies like Intuitive Surgical and Heartware live on the "gee whiz" end of the med-tech spectrum, Teleflex (TFX)
is on the other end. That is not to say that there isn't meaningful
R&D and engineering going into the company's products, but
categories like central venous catheters, PICCs, Foley catheters, and
endotracheal tubes just don't tend to get growth-oriented med-tech
investors all that excited.
Even so, Teleflex has a lot going for
it. The company has been a very willing acquirer and increased
investments in R&D should lead the way to more innovative new
products and market share growth. In the meantime, management is focused
on operating improvements that should support double-digit earnings
growth. While Teleflex does not look all that cheap on a discounted cash
flow basis, the company's above-average growth prospects could maintain
healthy valuation multiples.
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For Teleflex, Small Things Add Up
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