In a report released yesterday, Travis Steed from Bank of America Securities reiterated a Hold rating on Zimmer Biomet Holdings, with a price target of $110.00.
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Travis Steed has given his Hold rating due to a combination of factors related to Zimmer Biomet Holdings’ financial outlook and market performance. The company has maintained its full-year operating margin guidance, despite a slight adjustment in the quarterly cadence, with expectations for Q3 operating margins to align with Q3 of the previous year at 26.3%. This is slightly below the Visible Alpha consensus of 26.7%, indicating limited upside potential in the near term.
Additionally, Zimmer Biomet’s revenue growth is projected to be around 6% for Q3, consistent with historical seasonality. However, the anticipated sequential decline in revenue from Q2 to Q3, although typical, suggests that significant growth is unlikely. Given these factors, along with the stock’s current price being close to the target price of $110, Steed’s Hold rating reflects a cautious stance, acknowledging the company’s stable performance but limited growth prospects.
According to TipRanks, Steed is a 4-star analyst with an average return of 7.0% and a 64.32% success rate. Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Zimmer Biomet Holdings, and Stryker.