ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings is projected to achieve sales of $7.85 billion and adjusted EPS of $8.23 by 2025, reflecting year-over-year growth of 4.0% and 2.9% respectively, aligning with current guidance expectations. The company's recent sales in the surgical equipment and technology (SET) segment of $489 million surpassed consensus estimates and demonstrated notable growth, indicating positive momentum in higher-growth end-markets. Furthermore, the anticipated operational margin expansion linked to the spin-off of ZimVie is expected to contribute significantly to overall performance, with management highlighting increased market penetration and traction from new product launches in the underserved knee and hip segments.

The analysis indicates a negative outlook on Zimmer Biomet Holdings due to anticipated revenue growth slowing to 2% or less, primarily driven by weaker sales from the ROSA robot and disappointing new product launches, alongside ongoing margin contraction that could lead to below-consensus earnings. Additionally, the company faces several risks, including potential challenges in the orthopedic market, pricing pressures on implant sales, and possible dilutive effects from its Paragon acquisition and foreign exchange headwinds. Finally, the projected adjusted EPS guidance of $8.25 at the midpoint, which is below the consensus estimate of $8.56, further underscores the company's financial challenges and diminished growth expectations.