ConMed (NSDQ:CNMD), in the middle of an under-appreciated turnaround, could be poised to augment its growth via selective acquisitions, according to Leerink Partners analyst Richard Newitter.

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."

New CEO Curtis Hartman, the former CFO and interim CEO at Stryker (NYSE:SYK), has said as much, Newitter wrote.

"During recent investor presentations and on the 1Q call, CEO Hartman has emphasized his intent to pursue tuck-ins," he wrote. "Ultimately, the company’s potential to do deals gives us an even higher level of conviction that CNMD will reach and possibly exceed a mid-single-digit top-line growth profile over the next several years. Initial deal sizes will likely be on the smaller side (i.e., technology add-ons with $5-$10M revenue) that are relatively easy to roll-up into the organization and likely to be accretive."