Needham downgraded Conmed (CNMD) to Hold from Buy without a price target The company’s long-term growth rate has decreased, mainly due to slower AirSeal and Buffalo Filter growth, the analyst tells investors in a research note. The firm believes the slower revenue growth is likely to drive more gradual margin improvement and slower earnings growth at Conmed. In addition, the company’s debt level limits its ability to acquire new growth drivers or to repurchase shares, contends Needham. The firm says Conmed’s outlook has deteriorated while the shares no longer at a discount given that peer multiples have contracted.
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