ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings has demonstrated strong growth potential, evidenced by an 11.3% year-over-year increase in revenues from its Technology & Data, BoneCement, and Surgical segments, fueled by robust demand for Rosa surgical robots. The company’s ongoing restructuring efforts and the successful introduction of innovative products have contributed to its healthy balance sheet and positioned it to achieve revenue growth in alignment with its FY25 guidance of 6.7% to 7.7%. With its leading market share in orthopedic reconstructive implants and positive performance across various key segments, Zimmer Biomet is well-positioned to benefit from favorable trends in the orthopedic market.

The analysis highlights a negative outlook on Zimmer Biomet Holdings (ZBH) primarily due to expectations of flat average selling prices (ASP) for FY25 and a modest headwind from selling day differences impacting growth. The company has experienced underperformance in certain key markets, notably showing weaker growth in knees relative to competitors and facing challenges in hips, leading to downward adjustments in operating margin estimates. Furthermore, there are significant risks tied to market share losses, execution challenges, and slower-than-expected new product introductions, compounded by ongoing weakness in restorative therapies and a measured outlook for international markets.