Zimmer Biomet: Solid Long-Term Setup but Execution Risks and Conservative Guidance Justify Hold Rating

Analyst Robbie Marcus of J.P. Morgan maintained a Hold rating on Zimmer Biomet Holdings, retaining the price target of $100.00.

Robbie Marcus has given his Hold rating due to a combination of factors that balance Zimmer Biomet’s solid fundamentals against its execution risk and relative underperformance. He notes that while the company operates in a healthy orthopedic market with stable procedure demand and resilient pricing, 2025 has been marked by repeated disappointments versus expectations, largely stemming from guidance missteps rather than a deterioration in the core business. Management is now shifting to a more cautious approach to forecasting, likely setting 2026 guidance below current Street expectations on both revenue and EPS as they build in more buffer for operational and macro uncertainties. At the same time, margins are expected to face near-term pressure from tariffs, which should temper earnings growth even as the company pushes toward its longer-term leverage goals.
Marcus also highlights that Zimmer Biomet’s revamped product portfolio and ongoing innovation in areas like knees and hips should support share recapture and deeper penetration within existing procedures over time, potentially making 2026 a more constructive inflection year. However, he believes investors still need clearer evidence that management can consistently execute on its long-range plan and deliver a reliable “beat and raise” cadence before the stock deserves a valuation in line with faster-growing, better-executing peers. Reflecting these mixed dynamics, his $100 December 2026 price target implies a valuation discount to large-cap medtech comparables, which he views as warranted until operational consistency improves. As a result, he maintains a Hold stance, recognizing the attractive long-term setup but waiting for stronger proof of delivery before turning more positive.

According to TipRanks, Marcus is a 4-star analyst with an average return of 8.4% and a 51.03% success rate. Marcus covers the Healthcare sector, focusing on stocks such as Boston Scientific, Penumbra, and Abbott Laboratories.

In another report released on December 16, Canaccord Genuity also maintained a Hold rating on the stock with a $93.00 price target.