Zimmer Biomet Holdings: Strong Innovation Pipeline and Financial Health Justify Buy Rating Despite Recent Challenges

Rick Wise, an analyst from Stifel Nicolaus, maintained the Buy rating on Zimmer Biomet Holdings. The associated price target was lowered to $110.00.

Rick Wise has given his Buy rating due to a combination of factors that highlight Zimmer Biomet Holdings’ potential for future growth despite recent challenges. The company’s third-quarter performance was mixed, with unexpected headwinds affecting sales figures. However, when adjusted for these late-quarter issues, the organic sales growth exceeded expectations, indicating underlying strength in the business.
Most notably, Zimmer Biomet’s innovation pipeline is progressing well, with new products like the Persona OsseoTi and the Oxford Partial Cementless Knee showing strong adoption rates. The company’s robotic and hip implant technologies are also gaining traction, contributing to improved commercial utilization. Additionally, Zimmer Biomet’s financial health remains robust, with strong gross margins and a solid balance sheet. These factors, combined with management’s commitment to more consistent performance and guidance, suggest that the company is well-positioned for future success, justifying the Buy rating.

According to TipRanks, Wise is a 3-star analyst with an average return of 1.0% and a 50.60% success rate. Wise covers the Healthcare sector, focusing on stocks such as Masimo, Artivion, and Edwards Lifesciences.

In another report released today, BTIG also maintained a Buy rating on the stock with a $112.00 price target.