On Thursday, funding agency Piper Sandler adjusted its worth goal for CONMED Company (NYSE:CNMD) shares, a medical expertise firm, lowering it to $80 from the earlier $95 whereas retaining an Chubby score on the inventory.
The adjustment follows CONMED’s second-quarter 2024 earnings report, which confirmed a slight miss in income however a marginal beat within the backside line.
CONMED’s Normal Surgical procedure enterprise exceeded expectations, and the corporate famous that its AirSeal product line continued to point out sturdy development, with capital gross sales within the second quarter of 2024 surpassing these in the identical interval of the earlier yr. This efficiency is seen as a constructive signal of the product’s enduring market presence.
Nevertheless, the corporate has revised its full-year steerage downward by roughly 3.5% on account of persistent provide chain challenges inside its legacy Orthopedic enterprise. These points have been affecting the corporate for almost a yr and are anticipated to affect income within the second half of 2024.
The inventory’s worth is anticipated to say no following the lowered steerage, a response that Piper Sandler acknowledges. Regardless of the near-term headwinds, the agency stays optimistic about CONMED’s development prospects. Piper Sandler cited a number of promising facets of the corporate’s portfolio, together with the Biorez expertise, as causes for sustaining the Chubby score.
In different current information, CONMED Company has seen a collection of changes in its worth goal by totally different monetary advisory companies, following its second-quarter 2024 earnings report. Piper Sandler revised its worth goal for CONMED all the way down to $80 from $95, regardless of sustaining an Chubby score.
This was in response to a slight miss in income however a marginal beat within the backside line, with the corporate’s Normal Surgical procedure enterprise and AirSeal product line displaying sturdy development.
Equally, Needham diminished its worth goal for CONMED to $97 from $106, whereas nonetheless sustaining a Purchase score, following a income shortfall and an earnings per share determine that exceeded the consensus.
The agency additionally famous a slowdown within the firm’s natural income development on account of ongoing provide chain challenges, significantly inside its Orthopedic Surgical procedure division. Regardless of these challenges, CONMED managed to extend its gross margin and working margin year-over-year.
One other adjustment by Needham diminished CONMED’s worth goal to $106 from $107, following the second-quarter outcomes from Intuitive Surgical (NASDAQ:), which included higher-than-expected placements of its da Vinci 5 surgical programs. This growth is anticipated to pose a near-term problem to CONMED’s income and earnings per share.
Regardless of these changes, each Piper Sandler and Needham keep a constructive outlook on the corporate’s inventory efficiency, citing numerous promising facets of the corporate’s portfolio and its continued development alternatives.
InvestingPro Insights
In gentle of the current worth goal adjustment by Piper Sandler for CONMED Company (NYSE:CNMD), InvestingPro information supplies extra context that could be helpful for buyers. With a market capitalization of $2.13 billion and a trailing twelve-month P/E ratio of 27.25, CONMED seems to be buying and selling at a valuation that displays its earnings potential. Notably, the corporate’s PEG ratio, which stands at a modest 0.14 for the final twelve months as of Q1 2024, means that its earnings development isn’t absolutely mirrored in its present worth.
InvestingPro Ideas point out that CONMED’s web earnings is anticipated to develop this yr, which aligns with Piper Sandler’s optimistic view on the corporate’s development prospects. Moreover, the corporate has a monitor report of sustaining dividend funds for 13 consecutive years, providing a dividend yield of 1.16% as of the most recent information. This might be a horny level for income-seeking buyers, particularly in a market the place dependable dividends are appreciated.
For these interested by deeper evaluation, InvestingPro provides extra tips about CONMED, together with insights on earnings revisions by analysts and the corporate’s liquidity place. There are 6 extra ideas obtainable for CONMED on InvestingPro at https://www.investing.com/professional/CNMD, which may present buyers with a complete understanding of the corporate’s monetary well being and future outlook.
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