In a report released today, Caitlin Cronin from Canaccord Genuity reiterated a Hold rating on Zimmer Biomet Holdings, with a price target of $101.00.
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Caitlin Cronin’s rating is based on Zimmer Biomet Holdings’ recent milestone in obtaining approval for its iTaperloc Complete and iG7 Hip System in Japan, which features innovative antibacterial coating technology. This development is significant as it addresses the unmet need for more effective solutions to prevent Periprosethetic Joint Infection (PJI), a serious complication in joint arthroplasty. Despite this progress, the analyst maintains a Hold rating due to the lack of a clear timeline for the technology’s launch in the US and the need for further evidence of the company’s strategic initiatives translating into tangible results.
Cronin acknowledges Zimmer Biomet’s leadership in infection prevention within the orthopedic sector, noting its comprehensive strategy that includes partnerships and investments in PJI-prevention solutions. However, the analyst remains cautious, indicating that the expected benefits from recent sales force changes and new initiatives are still uncertain and largely anticipated in the future. As such, the Hold rating reflects a wait-and-see approach, pending more clarity and concrete outcomes from the company’s ongoing efforts.
Based on the recent corporate insider activity of 35 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.