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Investing.com - B.Riley downgraded ZimVie Inc. (NASDAQ:ZIMV) from Buy to Neutral while raising its price target from $16.00 to $19.00 following the company’s acquisition announcement. According to InvestingPro data, the stock has shown remarkable momentum with a 36% gain over the past six months, while maintaining a healthy current ratio of 2.14.
The rating change comes after ZimVie reported second-quarter 2025 results on Wednesday evening, posting revenue of $116.7 million, exceeding both B.Riley’s and consensus estimates of $112.6 million and $112.8 million respectively. The company’s adjusted EBITDA reached $17.5 million, also surpassing analyst expectations of $17.2 million. InvestingPro analysis shows the company maintains a strong gross profit margin of nearly 65%, with analysts expecting profitability this year despite recent challenges.
On July 21, ZimVie entered into a definitive agreement to be acquired by private equity firm ARCHIMED for $19 per share in cash, valuing the company at approximately $730 million. The transaction is expected to close by the end of 2025.
The acquisition agreement includes a 40-day "go-shop" period during which ZimVie may solicit alternative offers until midnight ET on August 29. This provision creates potential for superior bids from other interested parties.
B.Riley adjusted its price target to $19 to reflect the pending acquisition price, noting that while the go-shop period could yield competitive offers, the firm views the closing of the deal with ARCHIMED as the most probable outcome.
In other recent news, ZimVie Inc. announced a strategic distribution agreement with Osstem Implant Co., Ltd. to expand its presence in the Chinese dental implant market. This partnership will allow Osstem Implant exclusive commercial responsibility for ZimVie’s implant systems in China, a market with an estimated demand of over 10 million units annually. Additionally, ZimVie has entered into a merger agreement with healthcare investment firm ARCHIMED, valued at approximately $730 million. Under this agreement, ZimVie stockholders will receive $19.00 in cash per share, a 99% premium to the company’s 90-day volume-weighted average price. The deal, which has been unanimously approved by ZimVie’s Board of Directors, is expected to close by the end of 2025, pending stockholder and regulatory approvals.
Barclays (LON:BARC) responded to this merger announcement by upgrading ZimVie’s stock rating from Underweight to Equalweight and more than doubling its price target to $19.00. In contrast, UBS analysts have adjusted their outlook by reducing the price target to $10.00 from $16.00, while maintaining a Neutral rating. UBS analysts noted promising developments such as increased implant volume growth and a rise in biomaterials sales, which management sees as positive indicators for future implant procedure volumes. These developments highlight significant changes and potential growth opportunities for ZimVie in the dental implant market.
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