UPDATE: Stifel Nicolaus Initiates Zimmer Holdings at Hold; More Diversification Needed

Stifel Nicolaus initiated coverage on Zimmer Holdings ZMH with a Hold rating. Stifel Nicolaus commented, "In our view, ZMH has lagged its competition in diversifying its business model, especially in expanding its emerging market exposure. At ZMH's current share price/valuation, these concerns surrounding strategic issues and possible competitive ‘headwinds” (Johnson & Johnson's, JNJ, $69.19, Hold, hips rebounding post-ASR XL Aectabular System controversies) offset potential economically-driven knee franchise re-acceleration from the full 2013 Persona knee launch. These concerns make us inclined to wait for a more compelling price entry point before turning more positive on the stock." Zimmer Holdings closed at $64.44 on Monday.