ZimVie initiated with a Hold at Needham

Needham initiated coverage of ZimVie with a Hold rating and no price target. ZimVie, the Dental and Spine businesses spun out of Zimmer Biomet in 2022, has a “solid” Dental business that is growing in line with the market, but the stock’s valuation reflects a struggling Spine business that has been “a perpetual share donor with no near-term path to return to market growth,” the analyst tells investors. Shares trade at a deep discount to peers, but the firm doesn’t see anything that would drive multiple expansion in the near-term given “flattish” revenue and EPS growth, the analyst added.