CNMD CONMED Corporation

CONMED (NYSE:CNMD) is exiting its gastroenterology business to focus on minimally invasive, robotic, and orthopedic soft tissue surgery. This strategic shift aims to improve margins and align with core surgical growth, though it removes a revenue contributor and introduces execution risks as the company navigates supply chain issues and profitability challenges. CONMED projects $1.6 billion revenue and $154.0 million earnings by 2028, with a fair value estimate of $54.00 per share, representing a 36% upside.

Shares of medical tech company CONMED (CNMD) rose 3.3% following the highly successful IPO of medical supply giant Medline (MDLN), which boosted investor confidence in the medical device sector. Additionally, CMR Surgical received FDA clearance for its robotic surgical system, further signaling innovation in the medical technology space. Despite this positive movement, CONMED's shares are still down 40.5% year-to-date and have experienced volatility, recently dropping due to a strategic exit from gastroenterology product lines.

Shares of medical tech company CONMED (NYSE:CNMD) saw a 3.3% jump due to positive sentiment in the medical device sector spurred by Medline's successful IPO and FDA clearance for CMR Surgical's robotic system. Despite this, CONMED's shares remain volatile, having dropped previously after announcing its exit from certain gastroenterology product lines. The stock is down 40.5% year-to-date and 45.9% below its 52-week high, indicating a challenging year for investors.

CONMED (CNMD) is exiting gastroenterology, accelerating the end of its GORE VIABIL biliary stent distribution deal as Olympus takes over U.S. rights in early 2026. Despite a significant recent stock decline, the company is considered 27.4% undervalued, with a fair value of $54 according to a narrative driven by the adoption of minimally invasive surgeries and strong product positioning. However, challenges like supply chain issues and hospital spending could impact its recovery.

CONMED Corporation (CNMD) announced its strategic exit from the gastroenterology product lines, including an early termination of its agreement with W. L. Gore & Associates for the VIABIL biliary stent. This move aims to sharpen the company's focus on its core growth areas: minimally invasive and orthopedic soft tissue surgery, to enhance its long-term margin profile. Following the announcement, CONMED's shares plunged over 9%, though the company reaffirmed its 2025 revenue and adjusted EPS guidance, anticipating improved consolidated gross margins by about 80 basis points post-exit.

B of A Securities has maintained a Neutral recommendation for CONMED (CNMD), with an average one-year price target of $55.08, suggesting a 37.46% upside. The company is projected to see a 1.60% increase in annual revenue and a non-GAAP EPS of 4.71. Institutional ownership remains significant, with several funds holding substantial stakes.