Teleflex Earnings: Palette Acquisition Solidifies Lead in Interventional Urology, Maintain Valuation

No-moat Teleflex reported second-quarter results that were largely consistent with our expectations, and we’re maintaining our fair value estimate. We are encouraged to see the continuation of postpandemic rebound in the firm’s 5.9% year-over-year top-line growth (constant currency). The interventional business led quarterly growth with an increase of 9.6% in constant currency fueled by balloon pumps and right heart catheters. We think demand for intra-aortic balloon pumps should remain solid and could potentially increase into 2024 now that Johnson & Johnson (and its legacy Abiomed business) has issued a recall for all Impella products that are also used in high-risk percutaneous interventions and cardiogenic shock.