ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings (ZBH) has demonstrated a positive trajectory in its financial performance, with significant growth in various segments, particularly an 11.3% year-over-year increase in the BoneCement and Surgical categories driven by strong demand for Rosa placements. The company's strategic focus on product innovation and recent mergers and acquisitions has resulted in marked improvements in top-line growth, positioning ZBH favorably within the orthopedic market. Additionally, ZBH's healthy balance sheet and consistent performance above industry peers bolster confidence in its ability to achieve its fiscal year 2025 revenue guidance, which anticipates growth rates between 6.7% and 7.7%.

Zimmer Biomet Holdings (ZBH) faces a challenging outlook due to expected flat average selling prices (ASP) for FY25, combined with headwinds from selling day differences potentially dampening growth. The recent performance metrics indicate weaker growth in the knee segment compared to peers, and a decline in operating margins has necessitated downward adjustments for Q3 and Q4 estimates. Additionally, ongoing issues such as market share losses, inconsistent execution, and slower-than-anticipated commercialization of key products further exacerbate the company's financial vulnerabilities, leading to a revised organic growth guidance down approximately 25 basis points.