What Happened?
Shares of medical tech company CONMED (NYSE: CNMD) fell 4.9% in the afternoon session after BofA Securities downgraded the stock to Underperform from Neutral, citing concerns about future growth.
The firm stated it expects CONMED to underperform other medical technology stocks over the next year. In its revised financial model, BofA lowered its 2027 organic growth estimate for the company to 4.5% from 5.8%. Furthermore, the firm reduced its 2027 earnings per share estimate to $4.54 from $4.67, placing it below the market consensus of $4.79. The price target for CONMED was maintained at $40.00.
After the initial drop, the shares shed some of the losses and rose to $34.26, down 4.7% from the previous close.
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What Is The Market Telling Us
CONMED’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 6.9% on the news that the U.S. Commerce Department initiated a national security investigation into medical equipment and devices, raising concerns about potential tariffs.
The probe, conducted under Section 232 of the Trade Expansion Act, examines whether imports of items like syringes, infusion pumps, and surgical instruments pose a national security risk. Such investigations can pave the way for new import duties, creating a significant overhang for the sector.
The goal of potential tariffs would be to boost domestic manufacturing by increasing the cost of foreign goods. This development has introduced new uncertainty for the industry, leading to broad-based declines in the stocks of major manufacturers, including Baxter International and GE HealthCare, as investors weigh the potential impact on supply chains and costs.
CONMED is down 15.4% since the beginning of the year, and at $34.26 per share, it is trading 38.6% below its 52-week high of $55.81 from August 2025. Investors who bought $1,000 worth of CONMED’s shares 5 years ago would now be looking at only $249.88.
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