TD Cowen analyst Josh Jennings maintained a Hold rating on Zimmer Biomet Holdings (ZBH – Research Report) today and set a price target of $119.00.
Josh Jennings’s rating is based on Zimmer Biomet Holdings’ recent guidance and market conditions. The company has set expectations for a 2% ex-fx revenue growth in the first quarter, which aligns with Street forecasts. This target is crucial as the full-year guidance is weighted towards the latter half of the year. Additionally, the company’s focus on tariff exposure is mitigated by the fact that 75% of its manufacturing is based in the US.
Jennings notes that Zimmer Biomet’s expectations for the first quarter are reasonable, considering the healthy state of the orthopedics market. The company has reported that orthopedic volumes have stabilized at a growth rate of 4-5%, driven by demographic trends, technological advancements, and improved pricing. These factors support the company’s achievable target of 2% ex-fx revenue growth for the first quarter. However, the anticipated decline in operating margins by 250bps compared to the previous year suggests a cautious approach, justifying the Hold rating.
Jennings covers the Healthcare sector, focusing on stocks such as Abbott Laboratories, Edwards Lifesciences, and Johnson & Johnson. According to TipRanks, Jennings has an average return of 0.2% and a 45.47% success rate on recommended stocks.
In another report released on April 21, Canaccord Genuity also maintained a Hold rating on the stock with a $115.00 price target.