Needham analyst Michael Matson has maintained their neutral stance on ZBH stock, giving a Hold rating on July 10.
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Michael Matson’s rating is based on Zimmer Biomet Holdings’ recent strategic decision to acquire Monogram Technologies. The acquisition, valued at approximately $168 million, is aimed at enhancing Zimmer Biomet’s robotics and enabling technologies offerings. While the acquisition is expected to be neutral to earnings per share from 2025 to 2027 and accretive thereafter, Matson expresses some reservations regarding the potential interest from surgeons in a fully automated robotic system.
Matson acknowledges that the acquisition could potentially improve Zimmer Biomet’s competitive positioning in the robotics space, particularly with the integration of Monogram’s AI-navigated knee arthroplasty solutions. However, the uncertainty surrounding the adoption of fully autonomous systems by surgeons contributes to a cautious outlook. As a result, Matson has opted for a Hold rating, reflecting a balanced view of the potential benefits and risks associated with this acquisition.
In another report released on July 10, Canaccord Genuity also maintained a Hold rating on the stock with a $101.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZBH in relation to earlier this year.