Zimmer Biomet shares target cut to $130 from $135, retains buy rating

Published 07/08/2024, 20:24
Zimmer Biomet shares target cut to $130 from $135, retains buy rating

On Wednesday, Zimmer Biomet Holdings Inc. (NYSE:ZBH) experienced an adjustment in its stock outlook by a Stifel analyst, who reduced the price target to $130 from $135, while maintaining a Buy rating on the shares. The adjustment follows the company's second-quarter earnings call for 2024, which provided insights into its performance and future prospects.

Zimmer Biomet, a medical device company, has shown consistent growth in the past, with sales increasing by approximately 5% or more over multiple quarters. The company appears to be on track to continue this trend for the full year of 2024.

The analyst noted several positive factors, including the ROSA robot, which continues to contribute to the company's growth, and the launch of multiple critical products. Additionally, Zimmer Biomet's restructuring initiatives are progressing faster than anticipated, moving towards a $200 million annual cost savings run-rate, which was initially expected by the end of 2025.

Despite these positives, Zimmer Biomet's performance in the second quarter of 2024 was mixed. The early part of the quarter, specifically April and May, saw implant volumes that were softer than expected. However, the situation improved steadily through the end of the quarter and into early third quarter, with July volumes rising in the mid-single digits.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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