Zimmer Biomet initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Zimmer Biomet with a Neutral rating and $129 price target. The analyst has a positive outlook for the company’s sales growth rate sustaining at 5%-plus through 2025 from new product introductions and strengthened commercial execution. However, the firm sees limited upside to consensus earnings estimates, with Zimmer’s earnings growth more dependent on financial leverage versus operating leverage, which will “cap the opportunity for P/E multiple expansion near-term.”