Conmed Corporation (NYSE: CNMD) shares surged 11.99% in pre-market trading on Thursday, following the release of its better-than-expected first-quarter 2025 earnings report. The medical technology company demonstrated robust financial performance, defying recent analyst price target reductions and ongoing supply chain challenges.

The Q1 results revealed impressive year-over-year growth, with total sales reaching $321.3 million, a 2.9% increase as reported and 3.8% in constant currency. Adjusted net income rose by 19.6% to $29.6 million, while adjusted diluted earnings per share climbed 20.1% to $0.95, surpassing market expectations.

Investors were particularly encouraged by positive developments in Conmed's product lines, especially the strong demand for BioBrace. The orthopedics segment experienced a 3.9% growth in constant currency, driven by robust international sales. Additionally, the company received FDA clearance for a new delivery device for BioBrace in rotator cuff repair, potentially enhancing surgical procedures and future growth prospects.

Despite the impressive quarterly performance, several analysts had recently cut their price targets for Conmed. Jefferies lowered its target from $75 to $58, Needham reduced its target from $91 to $61, and Wells Fargo cut its target from $70 to $57. These adjustments likely reflect ongoing concerns about supply chain challenges and potential tariff impacts, particularly from China. However, the market appears to be focusing on Conmed's strong performance and positive outlook for its key growth drivers, overshadowing the analyst downgrades.

Patrick Beyer, Conmed's CEO, highlighted the company's progress in addressing supply chain issues, noting a decline in the number of SKUs on backorder and expectations for further improvements by year-end. This positive outlook, combined with the strong financial results and product innovations, seems to have fueled investor confidence, resulting in the significant stock price surge.