UPDATE: Goldman Sachs Upgrades Zimmer Holdings to Neutral on Improving Orthopedic Volumes

Goldman Sachs raised its rating on Zimmer Holdings

from Sell to Neutral and increased its price target from $58 to $70. Goldman Sachs noted, "Our investment thesis is based on the following factors: (1) improving outlook on US orthopaedic surgical volumes; (2) decelerating rates of pricing pressure; (3) capital allocation optionality with the potential for larger free cash flow returns to shareholders; and (4) shares appear fairly valued at current levels. Since being added to the Americas Sell List on August 9, 2011, ZMH shares are up 20.5% vs. the S&P 500 up 21.0%. On a trailing 12-month basis, ZMH is +33.0% vs. the S&P 500 +13.0%." Zimmer Holdings closed at $65.50 on Monday.