CONMED (CNMD) competes in the orthopedic surgery markets against much larger, technically-competent companies that possess substantially more assets. However, a large percentage of CONMED's products are designed for minimally invasive surgery, a trend that is extremely popular these days.The company depends heavily on acquisitions, which may be difficult to fund during the current weak economic environment. Furthermore, the company needs to obtain operational synergies out of these acquisitions so that they don't become a waste of resources.
We lowered our revenue and earnings per share estimate for both fiscal 2010 and 2011 based on the susceptibility of Conmed to economic turbulence. We therefore downgrade the stock to Underperform with a target price of $18.
CONMED Corp. (CNMD) : FULL ANALYST REPORT
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