ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings has demonstrated a strong financial turnaround, evidenced by a notable 11.3% year-over-year growth in its Technology & Data, BoneCement, and Surgical segments, driven by robust placements of its Rosa surgical technology. The company's balanced approach, characterized by significant contributions from new product launches and strategic mergers and acquisitions, positions it favorably within the competitive orthopedic market, where it has consistently achieved growth rates that are in-line with or above industry peers. Furthermore, with its healthy balance sheet and notable performance in key segments such as knees and upper extremities, Zimmer Biomet is well-positioned to capitalize on the growing demand in orthopedic end markets.

Zimmer Biomet Holdings (ZBH) faces a challenging outlook due to stagnant average selling prices (ASP) expected for FY25 and lowered growth estimates, projecting only a 5.4% year-over-year growth in FY26. The company has reported lagging performance in market segments, specifically with knee products trailing behind competitors like Stryker while hip product growth remains the weakest, contributing to a diminished operating margin in light of ongoing execution challenges. Additionally, the risks associated with market share erosion, manufacturing issues, and slower commercialization of key products further compound the negative sentiment towards ZBH's financial performance.