JMP Securities analyst David Turkaly maintained a Buy rating on Zimmer Biomet Holdings (ZBH – Research Report) today and set a price target of $140.00.
David Turkaly’s rating is based on Zimmer Biomet Holdings’ solid performance and promising growth trajectory. In the first quarter of 2024, despite facing headwinds such as fewer selling days and challenging year-over-year comparisons, the company managed to surpass expectations in both sales and earnings per share. Zimmer Biomet not only delivered a modest upside in the recent quarter but also reaffirmed its 2024 guidance, indicating sustained revenue growth and an earnings per share forecast that reflects confidence in the company’s financial health. Additionally, the implementation of a restructuring plan is poised to generate substantial cost savings and operational margin expansion, further underpinning the Buy rating.
Furthermore, Turkaly believes that Zimmer Biomet is strategically positioned to outpace market growth rates, with robust product pipeline potential highlighted by the planned launch of 40 new products in the upcoming years. The company’s core franchises are expected to achieve growth 100-200 basis points above market rates, which is reflected in the company’s financial mantra under the leadership of the new CEO. Turkaly’s $140 price target is anchored by applying a multiple to the updated earnings per share estimate for 2025, reinforcing the optimism surrounding Zimmer Biomet’s prospects and justifying the Buy rating.
In another report released on May 8, BTIG also maintained a Buy rating on the stock with a $139.00 price target.
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Zimmer Biomet Holdings (ZBH) Company Description:
Zimmer Biomet Holdings, Inc. is a musculoskeletal healthcare company. The company engages in designing, manufacturing and marketing orthopedic reconstructive products; biologics, sports medicine, extremities and trauma products; spine, dental implants, bone healing, craniomaxillofacial and thoracic products; and related surgical products.
Read More on ZBH:
- Zimmer Biomet Announces Quarterly Dividend for Second Quarter of 2024
- Zimmer Biomet price target lowered to $130 from $137 at Truist
- Zimmer Biomet price target raised to $155 from $150 at Oppenheimer
- Zimmer Biomet backs FY24 adjusted EPS view $8.00-$8.15, consensus $8.06
- Zimmer Biomet reports Q1 adjusted EPS $1.94, consensus $1.87
