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Investing.com - Bernstein SocGen Group raised its price target on Zimmer Biomet (NYSE:ZBH) to $105.00 from $100.00 on Friday, while maintaining a Market Perform rating on the medical device maker’s stock. The company, with a market capitalization of $19.47 billion, has seen its shares surge 8.62% over the past week.
The price target increase represents a 5% upward revision from the firm’s previous valuation, reflecting a higher price-to-earnings multiple of 12.0x compared to the previous 11.5x multiple. The stock currently trades at 22.18x earnings, with analyst targets ranging from $95 to $138.
Bernstein applied this multiple to its forward Q5-Q8 earnings per share estimate of $8.76, which was also revised upward from the previous estimate of $8.66.
The research firm noted that Zimmer Biomet’s "story is improving" based on current performance metrics and company guidance.
Bernstein indicated further potential upside exists if the company successfully executes "its plan for steep growth acceleration" expected in the second half of 2025.
In other recent news, Zimmer Biomet Holdings reported second-quarter earnings that surpassed analyst expectations. The company’s strong performance was attributed to its U.S. hip and knee portfolios, as well as its global S.E.T. business. In light of these results, Zimmer Biomet has raised its full-year earnings guidance. These developments reflect the company’s positive momentum in the medical device sector. The announcement of the earnings results comes as a significant update for investors. Zimmer Biomet’s financial performance and outlook adjustments are key points of interest in the current market environment. Investors and analysts will be closely monitoring how these changes impact the company’s future financial health.
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