CONMED (CNMD): A Fresh Look at Valuation Following Upgraded 2025 Earnings Forecasts

CONMED (CNMD) is back on investors’ radar following a wave of higher earnings estimate revisions for 2025, signaling rising confidence in the company’s bottom line and cash flow prospects. As a major provider of medical products, particularly in minimally invasive procedures, CONMED is drawing fresh attention after analysts bumped up their forecasts. This suggests the coming year could bring growth opportunities that not everyone has priced in yet.

The stock has seen a noticeable swing lately, with shares up nearly 10% in the last month but still down around 22% over the past year. That bounce comes after a challenging stretch for healthcare equipment names. While momentum has picked up recently, the longer-term trend has been lackluster. The recent shift in sentiment, driven partly by the improved outlook, has some investors wondering if the tide is turning for CONMED after a tough period.

After this year’s bounce from the lows, is CONMED offering a genuine bargain at these levels, or has the recent enthusiasm already caught up with all the future growth?

Most Popular Narrative: 8.5% Undervalued

According to the community narrative, CONMED's shares are currently trading at a notable discount to their estimated fair value. This undervaluation is supported by future earnings growth expectations, margin expansion, and careful consideration of both industry opportunities and risks.

"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. This is expected to drive sustained top-line growth."

What is powering this optimistic valuation? Analysts in this narrative are focusing on a potential scenario where margins may widen, earnings increase, and CONMED’s procedure-driven revenue engine gains momentum. Which financial factors are being considered to reach this price target? Unlock the full story to learn which key growth assumptions support this higher valuation.

Result: Fair Value of $61 (UNDERVALUED)

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

However, persistent supply chain problems or increased competition could limit margin gains. This challenges the idea that CONMED’s current price offers real long-term value.

Find out about the key risks to this CONMED narrative.

Another View: Discounted Cash Flow Perspective

Taking a different approach, our DCF model also indicates CONMED may be undervalued. This method looks at long-term cash flows rather than just profit multiples. Could these alternative perspectives be pointing to overlooked value?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CONMED for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own CONMED Narrative

If you want to see things from your own angle or have insights that go beyond these outlooks, you can craft a personal analysis in just a few minutes. So why not do it your way?

A great starting point for your CONMED research is our analysis highlighting 4 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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