Zimmer Biomet Holdings: Strategic Positioning and Cautious Growth Outlook with Hold Rating

In a report released today, Travis Steed from Bank of America Securities maintained a Hold rating on Zimmer Biomet Holdings (ZBH – Research Report), with a price target of $135.00.

Travis Steed’s rating is based on Zimmer Biomet Holdings’ strategic positioning and future growth prospects. The company has set a prudent growth guidance of 3-5% for 2025, aligning with the market’s growth rate. This cautious approach reflects the company’s anticipation of potential challenges and its focus on improving execution.
Additionally, Zimmer Biomet is optimistic about its new product launches, which are expected to gradually enhance market share in the hips and knees segments over the next several quarters. The company is also focusing on strategic mergers and acquisitions to drive growth, although these efforts may initially dilute earnings. Despite these positive developments, the time required for these strategies to materialize and the potential for earnings dilution contribute to the Hold rating.

Steed covers the Healthcare sector, focusing on stocks such as Intuitive Surgical, Abbott Laboratories, and Dexcom. According to TipRanks, Steed has an average return of 9.2% and a 62.02% success rate on recommended stocks.