Analyst Caitlin Cronin from Canaccord Genuity maintained a Hold rating on Zimmer Biomet Holdings and keeping the price target at $101.00.
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Caitlin Cronin’s rating is based on Zimmer Biomet Holdings’ strategic acquisition of Monogram, an AI-driven robotics company, which is expected to enhance its orthopedic surgery offerings. While this acquisition aligns with ZBH’s goal to increase its market share in robotic knee surgeries, the integration of Monogram’s technology will take time and is subject to regulatory approvals.
Despite the potential long-term benefits, the immediate financial impact is expected to be neutral, with accretive effects anticipated only after 2028. Additionally, the competitive landscape, particularly with strong players like Stryker, poses challenges for ZBH’s growth in the US knee market. Therefore, while the acquisition is a positive step towards strengthening ZBH’s portfolio, the uncertainties and execution risks lead to a Hold rating until further clarity is achieved.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $110.00 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.