Needham Downgrades CONMED (CNMD) Stock

CONMED Corporation (NYSE:CNMD) is one of the stocks that made it to our list of top 10 newsworthy upgrades and downgrades. Needham downgraded the company’s stock from “Buy” to “Hold,” with the firm highlighting concerns related to its slowing growth trajectory. The research firm cited reduced long-term growth rates, mainly in Conmed’s AirSeal and Buffalo Filter product lines, as the factors responsible for the downgrade. The slower revenue growth can result in more gradual margin improvement and lower EPS growth.

As per the firm, the downgrade was seen because CONMED Corporation (NYSE:CNMD)’s valuation has shifted as compared to its peers. The firm stated that it previously defended CONMED Corporation (NYSE:CNMD)’s stock when it traded at a discount to peers. However, the firm noted that small and mid-cap GARP peers witnessed a contraction in their P/E multiples. The company expects revenue currency headwinds of ~50 bps – 70 bps as compared to 100 bps – 120 bps previously. CONMED Corporation (NYSE:CNMD) anticipates reported revenue of between $1.350 billion – $1.378 billion in FY 2025 as compared to previous guidance of $1.344 billion – $1.372 billion.

CONMED Corporation (NYSE:CNMD) is a medical technology company that develops, manufactures, and sells devices and equipment for surgical procedures.

While we acknowledge the potential of CNMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than CNMD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.