ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings is projecting sales of $7.85 billion for 2025, representing an increase of 4.0% year-over-year, alongside an anticipated adjusted EPS of $8.23, which reflects a growth of 2.9% compared to the previous year. The company reported that its SET sales grew by 8.4%, outpacing consensus expectations, highlighting robust performance in this segment, while knee and hip product lines are gaining traction due to successful new product launches and increased market penetration. Additionally, the recent ZimVie spin-off is expected to contribute to an expansion of operating margins over time, with management projecting an average annual margin expansion of +30 basis points, further enhancing the company’s financial outlook.

The analysis of Zimmer Biomet Holdings reflects a negative outlook primarily due to anticipated sluggish revenue growth, projected at 2% or lower, exacerbated by underwhelming performance from the ROSA surgical robot and new product launches. Earnings expectations are further diluted by significant headwinds from foreign exchange fluctuations, with an estimated impact of 150-200 basis points, resulting in guidance for adjusted earnings per share that falls short of consensus estimates. Additionally, risks include underperformance in the orthopedic market, potential pricing pressures for implants, and integration challenges following recent acquisitions, all of which could hinder overall financial performance moving forward.