ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings has demonstrated a positive trajectory in its financial performance, highlighted by an 11.3% year-over-year growth in its BoneCement and Surgical segment, driven by strong placements of its Rosa technology. The company has effectively executed a turnaround strategy, resulting in growth that has consistently matched or surpassed that of its peers, with segment growth in knees reaching 5.3% globally and hips achieving 3.8% year-over-year. Additionally, with a healthy balance sheet and a focus on restructuring initiatives, Zimmer Biomet is well-positioned to realize further operating leverage and meet its FY25 revenue growth guidance of 6.7% to 7.7%.

Zimmer Biomet Holdings faces challenges that contribute to a negative outlook, including expectations of flat average selling prices (ASP) for fiscal year 2025 and modest headwinds from selling day differences impacting growth. The company's growth in knee product sales has underperformed compared to competitors like Stryker, while hip sales have shown even greater weakness, indicating potential losses in market share. Additionally, ongoing execution challenges, manufacturing risks, and a slowdown in the commercialization of new products add further pressure, prompting a reassessment of operating margins and organic growth guidance.