BTIG analyst Ryan Zimmerman maintained a Buy rating on Zimmer Biomet Holdings (ZBH – Research Report) yesterday and set a price target of $123.00.
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Ryan Zimmerman has given his Buy rating due to a combination of factors including Zimmer Biomet Holdings’ recent strategic product introductions aimed at regaining market share in the hip replacement sector. The company has launched new products such as the Z1 Triple Taper Stem, HAMMR, and OrthoGrid, which have received mixed but generally positive feedback from orthopedic surgeons. Although these products have not been deemed revolutionary, they are seen as useful additions that could help improve the company’s competitive position.
Furthermore, Zimmerman’s valuation of Zimmer Biomet Holdings supports the Buy rating, with a price target of $123 based on a 13.5x multiple of the company’s 12-24 month EPS estimate. This multiple is considered a discount compared to peers and the company’s historical average, reflecting a cautious optimism given the company’s recent revenue and earnings performance. Overall, the combination of strategic product developments and a favorable valuation underpins the Buy recommendation.
Zimmerman covers the Healthcare sector, focusing on stocks such as GE Healthcare Technologies Inc, Zimmer Biomet Holdings, and Globus Medical. According to TipRanks, Zimmerman has an average return of -4.0% and a 38.85% success rate on recommended stocks.
In another report released on April 15, RBC Capital also maintained a Buy rating on the stock with a $125.00 price target.