Research Notes: CONMED's Big Risk

Competitive concerns have driven short interest up. There may be more downside ahead

Highlights:

• Medical device company CONMED looks like one of the more attractive plays in healthcare. The stock trades at 18x forward EPS despite guidance for 20% growth.

• But short interest suggests the opposite, and centers on a key threat to the business from a major rival.

• Management is emphatic that key products can power through, but early commentary suggests CONMED’s leadership may be underestimating its challenge.