In a report released on December 5, Travis Steed from Bank of America Securities reiterated a Hold rating on Conmed, with a price target of $52.00.
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Travis Steed has given his Hold rating due to a combination of factors related to Conmed’s recent strategic decisions and financial outlook. Conmed announced its plan to exit its gastroenterology product lines, which is part of its broader strategy to optimize its portfolio. This decision includes ending its distribution agreement for the Gore VIABIL biliary stent earlier than initially planned, with Olympus taking over as the new distributor.
While Conmed expects to receive proceeds from this transaction, the exact amount remains undisclosed. The exit is anticipated to be accretive to gross margins but dilutive to earnings per share (EPS) in 2026. Consequently, Steed has adjusted the 2026 EPS estimate downward and revised the price objective to $52. The Hold rating reflects a cautious stance as the company navigates these changes and awaits improved execution.
Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Intuitive Surgical, and Medtronic. According to TipRanks, Steed has an average return of 8.4% and a 62.09% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $43.00 price target.