Needham analyst Michael Matson has maintained their neutral stance on ZBH stock, giving a Hold rating on July 27.
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Michael Matson has given his Hold rating due to a combination of factors impacting Zimmer Biomet Holdings. The company showed a modest improvement in its second-quarter 2025 performance, with revenue and earnings per share slightly exceeding market expectations. Management has adjusted its revenue and earnings guidance upwards, considering reduced tariff impacts and potential benefits from currency and operational efficiencies.
Despite these positive developments, Zimmer Biomet’s growth prospects remain limited. The company’s organic revenue growth saw a slight increase, driven by strong performance in the hip segment, although it faced challenges such as fewer selling days. Additionally, while the global reconstruction market remained stable, Zimmer Biomet experienced minor shifts in market share, losing some ground in knee products but gaining in hips. Given the anticipated modest earnings growth through 2026, partly due to dilution from acquisitions and tariffs, the Hold rating is maintained.
Matson covers the Healthcare sector, focusing on stocks such as TransMedics Group, Merit Medical Systems, and Establishment Labs Holdings. According to TipRanks, Matson has an average return of -7.4% and a 36.95% success rate on recommended stocks.
In another report released on July 27, TD Cowen also maintained a Hold rating on the stock with a $104.00 price target.