BTIG cuts Zimmer Biomet stock price target to $117

On Monday, BTIG adjusted its price target for Zimmer Biomet (NYSE:ZBH) shares, bringing it down to $117 from the previous target of $123, while still endorsing the stock with a Buy rating. Currently trading near its 52-week low of $93.1, InvestingPro analysis suggests the stock is undervalued. The revision followed the company’s first-quarter results for the year 2025.

Zimmer Biomet reported revenues of $1.909 billion, a 1.1% year-over-year increase, and an adjusted earnings per share (EPS) of $1.81. These figures were in line with and slightly above the consensus estimates, which anticipated revenues of $1.895 billion and an EPS of $1.77. The performance was attributed to growth in the segments of Surgical, Extremities, Trauma, Knees, and Hips, which was partially offset by declines in Technology & Data, Bone Cement, and Surgical products.

The company provided an updated forecast for the full year 2025, projecting reported revenue growth between 5.7% and 8.2% year-over-year, an increase from the previously estimated range of 1.0% to 3.5%. This upgrade in guidance is partly due to more favorable foreign exchange conditions and earlier than expected contributions from the acquisition of Paragon 28. The company, which has maintained dividend payments for 14 consecutive years, has also maintained its forecast for organic growth, excluding foreign exchange impacts, at 3.0% to 5.0% year-over-year. Discover more valuable insights about Zimmer Biomet in the comprehensive Pro Research Report, available exclusively on InvestingPro.

Despite Zimmer Biomet’s growth in Knee and Hip segments, the company’s performance in these areas lagged behind competitors such as Stryker and Johnson & Johnson on a two-year stack basis. BTIG noted that the company’s recovery in share value could hinge on this variable. Additionally, while multiple new product launches are anticipated throughout the fiscal year 2025, which are expected to boost growth, the lingering question of tariffs and their impact into fiscal year 2026 remains unresolved. The firm pointed out that while Zimmer Biomet has some measures to offset the impact of tariffs, the lack of clarity on the exact repercussions may introduce increased risk to the stock, especially with an expected step-up in growth in the second half of 2025.

In other recent news, Zimmer Biomet reported its first-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $1.81, which exceeded analysts’ expectations of $1.77. The company also reported revenues of $1.91 billion, slightly surpassing the forecasted $1.89 billion. Despite these positive results, Zimmer Biomet revised its full-year 2025 EPS forecast downward to a range of $7.90 to $8.10, below the consensus projection of $8.21. This revision reflects the impact of the recent Paragon 28 acquisition and anticipated tariff headwinds. Zimmer Biomet expects the acquisition to contribute significantly to revenue growth, with reported revenue growth guidance raised to 5.7% to 8.2%. Citi analyst Joanna Wuensch adjusted the company’s stock target price to $104, maintaining a Neutral rating, following these developments. TD Cowen’s Joshua Jennings noted the competitive landscape, highlighting that Zimmer Biomet’s U.S. Ortho growth lagged behind Stryker Corp (NYSE:SYK). but was competitive with Smith & Nephew. The company also completed the acquisition of Paragon 28, enhancing its position in the foot and ankle orthopedic segment, and showcased innovations at the American Academy of Orthopaedic Surgeons annual meeting.

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