Zimmer Biomet Holdings (ZBH – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Travis Steed from Bank of America Securities maintained a Hold rating on the stock and has a $110.00 price target.
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Travis Steed’s rating is based on several factors affecting Zimmer Biomet Holdings. The company is undergoing changes in its US sales organization, including a revised incentive structure aimed at boosting growth, price, and margin, alongside increased specialization and resource deployment. However, these efforts were temporarily disrupted by ERP issues in the second half of 2024, though progress has since accelerated.
Additionally, while the reduction in tariff rates from the US-China trade deal is beneficial, the strengthening of the dollar has moderated the net impact of these tariffs. Key product launches, such as the Oxford cementless partial knee and the Z1 triple taper stem, present growth opportunities, though competition remains a challenge. Despite these initiatives, the company’s diversification strategy is expected to limit margin and EPS upside, leading to the Hold rating.
In another report released on May 12, Canaccord Genuity also maintained a Hold rating on the stock with a $101.00 price target.
ZBH’s price has also changed moderately for the past six months – from $112.540 to $96.730, which is a -14.05% drop .