Needham Downgrades CONMED Corporation (CNMD) to Hold from Buy

CONMED Corporation (NASDAQ:CNMD) is one of the best undervalued medical device stocks to buy now. On June 12, Needham downgraded CONMED Corporation (NASDAQ:CNMD) to Hold from Buy without a price target.

Closeup portrait of a surgeon wearing a surgical mask and gown while holding a surgical device.

The firm told investors in a research note that CONMED Corporation (NASDAQ:CNMD) is experiencing a drop in its long-term growth rate, primarily attributed to slower AirSeal and Buffalo Filter growth. It believes that slower revenue growth is likely to result in slower earnings growth and more gradual margin improvement for the company.

The firm further reasoned that CONMED Corporation’s (NASDAQ:CNMD) debt levels restrict its potential to repurchase shares or acquire new growth drivers. It contended that the company’s outlook has deteriorated, and the shares are no longer at a discount provided that peer multiples have contracted.

CONMED Corp (NASDAQ:CNMD) is a medical technology company that provides surgical devices and equipment for minimally invasive procedures. Healthcare professionals, such as surgeons, use their products in a range of specialties, such as general surgery, orthopedics, thoracic surgery, gynecology, and gastroenterology.

The company’s product line comprises general surgery and orthopedic surgery. General surgery comprises endo-mechanical instrumentation primarily used for minimally invasive gastrointestinal and laparoscopic procedures. The orthopedic surgery product line comprises lower extremities, sports medicine implants and instrumentation, specialty-powered surgical instruments, and more.

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Disclosure: None. This article is originally published at Insider Monkey.