Patrick Wood, an analyst from Morgan Stanley, maintained the Hold rating on Zimmer Biomet Holdings. The associated price target is $95.00.
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Patrick Wood has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Zimmer Biomet Holdings’ recent performance. The company reported a slight beat in organic sales and earnings per share, which is encouraging given the recent skepticism surrounding its US Knee business and the overall market expectations. However, the continued weakness in the US Knee segment and the need for a significant improvement in the second half of the year contribute to a cautious outlook.
While the sales growth in other segments like Hips and SET was strong, the underperformance in the US Knee segment and the miss in the Other segment, which includes Technology & Data, Bone Cement, and Surgical, weigh on the overall assessment. The company has tightened its full-year growth guidance, but the necessity for a ramp-up in organic growth in the latter part of the year suggests that investors should remain cautious. As a result, Wood’s Hold rating reflects a balanced view of the company’s current strengths and the challenges it faces moving forward.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $110.00 price target.
ZBH’s price has also changed slightly for the past six months – from $100.930 to $98.430, which is a -2.48% drop .