CONMED (CNMD) is likely to trail other medtech stocks over the next year as slower growth, stronger competition and tighter hospital budgets weigh on its outlook, although recent leadership changes could lead to a new strategy, BofA Securities said in a note Monday.

The investment firm said investors returning to medtech may favor larger, higher-growth companies and smaller businesses with stronger sales potential instead of CONMED.

BofA lowered its 2027 organic growth forecast to 4.5% from 5.8% and reduced its earnings estimate to $4.54 per share from $4.67, below the Wall Street estimate of $4.79.

CONMED may find it harder to gain market share because larger competitors are becoming stronger across sports medicine, surgical equipment and other markets, while tighter hospital budgets could also favor larger companies that can offer wider partnerships instead of serving only as product suppliers, according to the note.

BofA lowered the company's rating to underperform from neutral and kept its $40 price target.

Shares of the company were down about 5.1% in Monday trading.

Price: 34.12, Change: -1.83, Percent Change: -5.09