Travis Steed, an analyst from Bank of America Securities, maintained the Hold rating on Zimmer Biomet Holdings. The associated price target remains the same with $110.00.
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Travis Steed’s rating is based on Zimmer Biomet Holdings’ recent acquisition of Monogram Technologies, which is expected to be EPS neutral through 2027 and accretive thereafter. The acquisition expands ZBH’s product offerings into the semi-autonomous market, enhancing its comprehensive portfolio in orthopedic robotics. Despite the strategic benefits, the acquisition is not anticipated to significantly impact ZBH’s financial flexibility, as it is funded through cash and available debt.
Steed maintains a Hold rating, as he believes that while ZBH is moving into higher growth markets, the potential for EPS upside is limited due to the company’s already high margins. The acquisition positions ZBH as a more competitive player in the robotics space, but the financial impact will be gradual, with revenue contributions expected to begin in 2027. Therefore, the Hold rating reflects a balanced view of potential growth opportunities and existing financial constraints.
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.