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Zimmer Biomet Holdings: Hold Rating Amid Competitive Concerns and Growth Projections

Zimmer Biomet Holdings: Hold Rating Amid Competitive Concerns and Growth Projections

TD Cowen analyst Josh Jennings has maintained their neutral stance on ZBH stock, giving a Hold rating today.

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Josh Jennings has given his Hold rating due to a combination of factors including Zimmer Biomet Holdings’ recent financial performance and growth projections. While the company’s fourth-quarter results met expectations, its performance in the US Orthopedics sector fell short when compared to a major competitor, which raises concerns about its competitive positioning.
The growth guidance for 2025, set between 3.0% to 5.0%, was below market expectations, with a strong reliance on the second half of the year to meet these targets. This reliance on a back-end loaded growth trajectory may pose risks if anticipated new product launches do not significantly drive the expected revenue increases. Furthermore, while Zimmer Biomet anticipates margin improvements in the latter half of the year, current projections suggest that their earnings per share may lag behind market estimates, contributing to the Hold rating.

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