ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings demonstrates a positive outlook supported by a significant 11.3% year-over-year growth in its Technology & Data, BoneCement, and Surgical segments, attributed largely to strong Rosa placements. The company has effectively improved its business performance, with diverse product offerings and past acquisitions contributing to top-line growth, reflected in lower double-digit growth in specific segments such as Upper Extremity. Furthermore, Zimmer Biomet's healthy balance sheet and alignment with FY25 revenue growth guidance, projecting increases of 6.7% to 7.7%, underscore its strong market position within the orthopedic sector.

Zimmer Biomet Holdings (ZBH) faces a negative outlook primarily due to stagnant average selling prices (ASP) projected for FY25, coupled with modest headwinds from selling day differences impacting growth. The company's performance in the knee segment has lagged behind peers, showing weaker growth, particularly in hips, signaling potential market share losses and execution challenges. Additionally, revised guidance reflects ongoing weakness in restorative therapies and a slowdown in knee and hip revisions, suggesting difficulties in achieving projected organic growth amid competition and operational hurdles.