A Fresh Look at CONMED (CNMD) Valuation Following Operational Gains and Growth Outlook

CONMED (CNMD) has recently drawn renewed investor attention as management highlights improvements across revenue, free cash flow, and operational efficiency. The company expects peak earnings per share in 2025, supported by supply chain savings.

See our latest analysis for CONMED.

The past year has been tough for CONMED shareholders, with a year-to-date share price return of -32.6% and a one-year total shareholder return of -25.5%. This reflects broader caution in the market, even as the company’s operational gains are building momentum behind the scenes. With improved cash flow and margin upgrades anticipated, it will be interesting to see if investor sentiment shifts in anticipation of recovery.

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With CONMED’s shares trading well below analyst targets despite strengthening fundamentals, investors are left to consider whether the market is overlooking its recovery or if all the future growth is already reflected in the price.

Most Popular Narrative: 25.6% Undervalued

CONMED’s most closely followed narrative assigns a fair value far above the last close of $45.41, highlighting a notable disconnect between market price and consensus growth expectations.

The accelerating adoption of minimally invasive and robotic-assisted surgeries, combined with CONMED's strong positioning via AirSeal and BioBrace (including expanding use cases and positive clinical feedback), is poised to support durable procedure volume growth and increase recurring revenue, driving sustained top-line growth. Global mandates and rising legislative momentum around operating room air quality (for example, smoke evacuation laws across an expanding number of states and international geographies) are significantly expanding CONMED's addressable market for Buffalo Filter, underpinning double-digit growth in this product line and broadening the company's long-term revenue base.

Read the complete narrative.

Curious why the narrative values CONMED so highly? The underlying assumptions involve steady growth from new procedures and margin expansion rarely seen in this sector. Discover what surprising financial levers the narrative is banking on and see if they challenge your own expectations about CONMED’s future.

Result: Fair Value of $61.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain challenges or heightened competition could undermine CONMED’s projected growth and pose risks to the optimistic valuation story.

Find out about the key risks to this CONMED narrative.

Build Your Own CONMED Narrative

If you see things differently or want to investigate the numbers for yourself, you can put together your own narrative in just a few minutes. Do it your way.

A great starting point for your CONMED research is our analysis highlighting 6 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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