In a report released today, Michael Matson from Needham maintained a Buy rating on Conmed (CNMD – Research Report), with a price target of $107.00.
Michael Matson has given his Buy rating due to a combination of factors reflecting Conmed’s recent financial performance and future prospects. Despite a modest reduction in guidance attributed to currency fluctuations and increased interest expenses, Conmed’s first-quarter revenue and earnings per share have exceeded consensus expectations. The company demonstrated resilient organic revenue growth, albeit at a slower pace compared to the previous quarter, possibly due to tougher comparisons. Additionally, both gross and operating margins have shown year-over-year improvements, indicating effective cost management and operational efficiency.
Moreover, Matson’s positive outlook is supported by the anticipation of significant improvements in revenue growth and margins in the second half of 2024, driven by an expected recovery in the supply chain within the Orthopedics segment. This projection suggests that the headwinds faced by Conmed are temporary and manageable, with a clearer path to growth on the horizon. Although the price target has been adjusted downward to account for revised earnings estimates, the overall assessment remains positive, hence the maintained Buy rating for CNMD’s stock.
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Conmed (CNMD) Company Description:
CONMED Corp. operates as a medical technology company, which engages in the development, manufacture and sale of surgical devices and related equipment. It operates through the following geographical segments: United States; Americas excluding the United States; Europe, Middle East, and Africa; and Asia Pacific. Its product lines also include orthopedic surgey and general surgery. The company was founded by Eugene R. Corasanti in 1970 and is headquartered in Utica, NY.
