CNMD

Conmed Corp.

Healthcare


Presented:03/22/2021
Price:$125.40
Cap:$3.63B
Current Price:$64.81
Cap:$2.00B

Presented

Date03/22/2021
Price$125.40
Market Cap$3.63B
Ent Value$4.10B
P/E Ratio450.11x
Book Value$24.54
Div Yield0.64%
Shares O/S28.94M
Ave Daily Vol263,533
Short Int6.71%

Current

Price$64.81
Market Cap$2.00B
CONMED Corp. operates as a medical technology company, which engages in the development, manufacture and sale of surgical devices and related equipment. It operates through the following geographical segments: United States; Americas excluding the United States; Europe, Middle East, and Africa; and Asia Pacific. Its products are used by surgeons and physicians in a variety of medical specialties, including orthopedic surgery, general surgery, gynecology, neurosurgery, thoracic surgery and gastroenterology. The company was founded by Eugene R. Corasanti in 1970 and is headquartered in Largo, FL.

Publicly traded companies mentioned herein: Conmed Corp (CNMD), Johnson & Johnson (JNJ), Medtronic plc (MDT), Stryker Corporation (SYK), Zimmer Biomet Holdings Inc (ZBH)

Highlights

The presenter is long shares of Conmed (CNMD), a $3.6B medical technology company that develops, manufactures, and sells surgical devices and related equipment for minimally invasive procedures worldwide. He views CNMD’s recent acquisitions of Buffalo Filter and SurgiQuest as accretive to the company’s gross margins. Over the next year, the presenter’s base case is for CNMD’s share price to approach ~$150 or ~15% upside from current levels as the company benefits from its acquisitions, which he views as growth engines. 

In the presenter’s opinion, CNMD has made two “very good deals” in the last 5 years. In February 2019, it acquired Buffalo Filter, a market leader in surgical smoke evacuation technologies, for $365MM. In January 2016, CNMD acquired SurgiQuest, which manufactures the AirSeal device for minimally invasive abdominal surgeries.

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