Analyst Patrick Wood from Morgan Stanley maintained a Hold rating on Zimmer Biomet Holdings and keeping the price target at $100.00.
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Patrick Wood’s rating is based on Zimmer Biomet Holdings’ current operational improvements and strategic positioning. The company is experiencing a healthier operational phase, with expected growth in the upcoming quarters and easing supply chain issues, which are helping procedure volumes return to normal levels. Pricing trends are favorable, particularly in the hip and knee segments, supported by demographic shifts and an increase in active, aging patients. Additionally, the company’s earnings per share guidance for 2025 has been positively revised, driven by margin expansion and cost control measures.
Despite these positive indicators, the Hold rating reflects a balanced view of the company’s prospects. While Zimmer Biomet is making significant strides in the ambulatory surgery center (ASC) market, with a notable increase in penetration, the company was initially slow to adapt to this trend. The strategic focus on ASCs and the company’s cultural reset are promising, but the full impact of these initiatives remains to be seen. Therefore, the Hold rating suggests that while there is potential for growth, investors should remain cautious and consider these factors when making investment decisions.
Wood covers the Healthcare sector, focusing on stocks such as TransMedics Group, Becton Dickinson, and Medtronic. According to TipRanks, Wood has an average return of -0.1% and a 59.84% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $110.00 price target.