Street Calls of the Week
Investing.com - Stifel raised its price target on Zimmer Biomet (NYSE:ZBH), the $19.85 billion medical devices company with a robust 71.25% gross profit margin, to $118.00 from $115.00 on Thursday, while maintaining a Buy rating following physician checks. According to InvestingPro analysis, the stock appears undervalued at its current price of $100.21.
The investment firm conducted conversations with 10 orthopedic surgeons about two Zimmer Biomet products currently in full U.S. market release: the Oxford Partial Cementless Knee and Osseofit Stemless Shoulder.
Stifel emphasized that the "magnitude of positive change" at Zimmer Biomet remains underappreciated, with the company’s innovation pipeline reinvigoration being particularly significant among its accomplishments.
The firm noted that beyond Zimmer Biomet’s frequently highlighted "Magnificent 7" pipeline innovations, products like Oxford Cementless and Osseofit demonstrate how the company’s new product launches could potentially benefit sales growth, margins, and market share over the next several years.
Stifel added that combined with improved M&A flexibility, Zimmer Biomet’s organic and inorganic efforts appear positioned to help drive growth rates toward 6% or higher from approximately 4% currently.
In other recent news, Zimmer Biomet reported second-quarter earnings that surpassed analyst expectations, driven by robust performance in its U.S. hip and knee segments and its global S.E.T. business. The company also raised its full-year earnings guidance, signaling confidence in its ongoing operations. JMP Securities maintained its Market Outperform rating for Zimmer Biomet and set a price target of $125.00, following the strong quarterly results. Revenue for Q2 2025 grew by 3% year-over-year on an organic and currency-neutral basis, outperforming consensus estimates by about 1%. Rothschild Redburn initiated coverage on Zimmer Biomet with a Buy rating, citing the company’s potential to reaccelerate organic growth and address past market share losses. The firm set a price target of $130.00. Meanwhile, Bernstein SocGen Group raised its price target for Zimmer Biomet to $105.00 from $100.00, reflecting an improved outlook with a higher price-to-earnings multiple. These developments highlight a positive trend in analyst sentiment and financial performance for Zimmer Biomet.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.