Analyst Travis Steed of Bank of America Securities reiterated a Hold rating on Zimmer Biomet Holdings, retaining the price target of $110.00.
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Travis Steed’s rating is based on a combination of factors that suggest a cautious outlook for Zimmer Biomet Holdings. The company reported a Q3 revenue guidance of 6%, which was above the market’s expectation of 5%, driven by new product uptake and a favorable orthopedic market. However, the underlying growth after adjustments for distributor orders and ERP impacts suggests a more modest increase, indicating potential volatility in future performance.
Despite some positive indicators, such as the raised EPS guidance and reduced tariff impacts, the sequential decline in revenue from Q2 to Q3 is in line with historical trends, which may not be sufficient to warrant a more optimistic rating. The company’s need to diversify its growth rate further supports the Hold rating, as the current growth trajectory may not be sustainable in the long term. Therefore, while there are promising elements, the overall outlook remains neutral, justifying the Hold recommendation.
According to TipRanks, Steed is a 4-star analyst with an average return of 4.9% and a 56.07% success rate. Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Zimmer Biomet Holdings, and Becton Dickinson.