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On Tuesday, Stifel analysts maintained their Buy rating and $72.00 price target for CONMED Corporation (NYSE:CNMD), a medical technology company. According to InvestingPro analysis, CNMD appears undervalued, with a perfect Piotroski Score of 9 indicating strong financial fundamentals. The affirmation comes as part of Stifel’s new purchasing analysis series, focusing on hospital insufflation products, an area where CONMED’s Airseal system operates.
The analysis, which draws on third-party data, aims to address concerns about the potential impact of Intuitive Surgical (NASDAQ:ISRG)’s da Vinci (EPA:SGEF) 5 system, which features an integrated insufflator, on CONMED’s sales and top-line growth. CONMED’s Airseal system accounts for approximately 18% of the company’s total sales, according to Stifel’s estimates. InvestingPro data shows the company maintains strong financial health with a current ratio of 2.27 and healthy gross margins of 55.8%.
The 2024 data reviewed by Stifel reveals several key points. Firstly, Airseal’s sales continued to grow, registering an 11.0% increase over the full year. Secondly, despite the limited launch of the da Vinci 5 in 2024, the data indicates that the utilization of Airseal consumables still experienced an uptick.
Additionally, the dataset shows that Airseal pricing saw a low-to-mid single-digit increase in 2024. This pricing trend, coupled with the growth in consumable utilization, suggests a positive outlook for CONMED’s insufflation product line.
Moreover, the analysis highlighted a 10.6% year-over-year growth in non-robotic Airseal consumables for 2024. This growth in the non-robotic segment is seen as a positive indicator of the company’s commercialization efforts outside of robotic applications.
Stifel’s analysis suggests that, at least for 2024, the introduction of competing technologies has not significantly hindered CONMED’s Airseal product performance and may indicate continued growth potential for the company’s insufflation products.
In other recent news, CONMED Corporation has declared a quarterly cash dividend of $0.20 per share, a move reflecting the company’s ongoing commitment to shareholder value. This dividend, a common practice for companies to distribute profits, will be payable on January 3, 2025, to shareholders of record as of December 20, 2024. This announcement aligns with CONMED’s financial strategy and is part of the regular financial disclosures mandated by the Securities and Exchange Commission. The declaration of this dividend follows CONMED’s consistent practice of providing returns to its investors. These recent developments provide crucial information for current and potential shareholders, aiding in their decision-making about their investment in CONMED Corporation.
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