By Fink Densford
ConMed could be poised for some merger & acquisition activity as new management engineers a turnaround, according to a Wall Street analyst.
Newitter, who upgraded CNMD shares to “outperform” and boosted the price target to $64 from $60, wrote in a note to investors yesterday that ConMed’s “turnaround and 2-3 yr sales/EPS growth prospects are underappreciated.”
“Moreover, our conviction in estimate upside is enhanced by potential for tuck-in M&A (not in models) to drive even more rapid margin expansion and EPS power vs. out-yr consensus,” Newitter wrote. “Recent announcements (i.e., new head of [business development], expanded credit facility) & mgmt commentary at investor conferences to us suggest M&A could begin to take form sooner vs. later – and we believe tuck-in deal announcements will drive further multiple expansion for the stock given the est. upside it could engender.”