Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Teleflex Incorporated (TFX - Snapshot Report), a global provider of medical devices used in critical care and surgery, recently won a new agreement with HealthTrust, a healthcare group purchasing organization (GPO). The agreement will cover the company’s line of ligation products including Horizon, Auto Endo and Hem-o-lok offerings under the well-regarded Weck brand.

The HealthTrust agreement has been effective from Dec 1, 2012. The group purchasing agreement will pool buyers for Teleflex by gaining access to HealthTrust’s 1,400 hospital members.  

Earlier this month, Teleflex won two new three-year agreements for its portfolio of surgical instruments with GPO Premier. The agreements will be effective from Feb 1, 2013 through Jan 31, 2016.

All these agreements should enhance Teleflex’s supply chain efficiency and help it achieve supply continuum. The agreements can thereby be expected to augment the company’s top-line on the back of volume growth. Further, Teleflex should be able to gain competitive edge over its peers.

The group purchasing agreements are expected to decrease overhead costs for prospective buyers. Moreover, the contagion of economic problems in Europe has increased the importance of GPO. Notably, Teleflex is already facing rebate in output prices in certain European nations due to GPO. The company has been facing increasing input costs over the past few quarters. Despite a probable hike in costs, we believe that Teleflex might not be able to increase the prices of its products under the group purchasing agreements, which might hamper its profitability.

We remain on the sidelines for Teleflex as well as its peers Covidien plc (COV - Analyst Report) and C. R. Bard (BCR - Analyst Report), each with a Zacks Rank #3 (Hold). However, we look forward to another peer CareFusion Corporation (CFN - Analyst Report), which carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%