Needham & Company Raises Price Target on Conmed (CNMD) to $53 After Hosting Investor Meeting

Needham & Company reiterated a Buy rating on CONMED (NASDAQ: CNMD), and raised the price target to $53.00 (from $49.00), after hosting management for an investor meeting. Needham believes that revenue growth should improve in 2017, entering the year solidly in the low single digits and exiting the year as high as the mid-single digits. Management noted that overall international growth was 3.7% CC in 3Q16 and that its international export business had positive growth for the first time since 2013.

Analyst Mike Matson commented, "We hosted investor meetings with CNMD’s CEO and CFO this week. CNMD’s turnaround is taking longer than we expected but as we’ve noted in the past, we view the turnaround as a question of “when” and not “if”. We come away from the meetings more confident that 2017 may (finally) be the year that we see a true inflection point in CNMD’s revenue growth. CNMD’s revenue growth has, in fact, already improved some during Curt Hartman’s tenure and we are particularly encouraged by the performance of the domestic General Surgery and International businesses. Domestic Orthopedics remains the laggard but management’s plans to address product shortcomings are well underway. The improving revenue growth should enable operating leverage and strong EPS growth. CNMD offers a rare small-cap med tech value story and we reiterate our Buy rating."

For an analyst ratings summary and ratings history on CONMED click here. For more ratings news on CONMED click here.

Shares of CONMED closed at $44.84 yesterday.

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