Conmed’s Strong Q1 Performance and Raised Guidance Justify Buy Rating Despite Tariff Challenges

Needham analyst Michael Matson maintained a Buy rating on Conmed (CNMD – Research Report) today and set a price target of $61.00.

Michael Matson has given his Buy rating due to a combination of factors, including Conmed’s ability to surpass both revenue and earnings per share expectations in the first quarter of 2025. Despite a slowdown in revenue growth attributed to supply chain issues and fewer selling days, the company demonstrated improved gross and operating margins year-over-year.
Management’s decision to raise revenue and EPS guidance for 2025, despite the anticipated tariff impact, reflects confidence in the company’s future performance. While acknowledging the challenges posed by tariffs and supply chain disruptions, Matson believes that Conmed’s shares remain undervalued. Consequently, he maintains a Buy rating, albeit with a reduced price target to account for ongoing tariff considerations and industry-wide valuation adjustments.