Needham upgrades ZimVie to Buy, sees cost cuts driving margin expansion

As previously reported, Needham upgraded ZimVie to Buy from Hold with a $20 price target. The firm’s channel checks and market commentary suggest the implant market was sequentially stable into Q2, and over the near-term, cost reduction initiatives should drive solid margin improvement for the company even in a flat market, the analyst tells investors in a research note. ZimVie also has more customers, positioning it well for when demand does return, which can drive additional margin expansion, Needham added.