Market Overview

Canaccord Upgrades Zimmer Biomet On Incremental Opportunities In 2020, Beyond

Share:
Canaccord Upgrades Zimmer Biomet On Incremental Opportunities In 2020, Beyond

Zimmer Biomet Holdings Inc (NYSE: ZBH) seems to be on the verge of beginning a multiyear cycle of accelerating top-line growth, according to Canaccord Genuity.

The Analyst

Canaccord Genuity’s Kyle Rose upgraded Zimmer Biomet from Hold to Buy, while raising the price target from $137 to $167.

The Thesis

The strategic and cultural changes that Zimmer Biomet had been implementing over the past 18 months now seem to have taken hold, Rose said in the upgrade note.

He added that this was evident in the encouraging second quarter results and management’s upbeat commentary.

Rose mentioned that Zimmer Biomet’s turnaround plan was focused on resolving quality and supply issues, accelerating the pace of new product launches and improving sales force morale and execution.

He believes the company is now well-positioned “to go on the offensive” in the back half of 2019 and 2020.

Zimmer Biomet faces several opportunities to beat the current consensus estimates for 2020, the analyst said.

He expects the upside to be driven by new products in the company’s core knee, spine and SET (sports, extremities and trauma) business units.

“What’s more, while we expect management to continue to guide conservatively, we believe top-line outperformance should lead to additional leverage opportunities exiting 2020 as supply chain improvements work through the inventory channel and ZBH annualizes investments in sales and marketing,” Rose wrote in the note.

Price Action

Shares of Zimmer Biomet were up 0.63% to $140.01 at the time of publishing on Wednesday.

Related Links

10 Biggest Price Target Changes For Wednesday

The Daily Biotech Pulse: All Eyes On Aimmune, Ritter Stumbles In Late-Stage Study, Catalyst Shelves Offering Plans

Latest Ratings for ZBH

DateFirmActionFromTo
Oct 2019UpgradesNeutralBuy
Sep 2019UpgradesHoldBuy
Sep 2019MaintainsOutperform

View More Analyst Ratings for ZBH
View the Latest Analyst Ratings

Posted-In: Canaccord GenuityAnalyst Color Biotech Upgrades Health Care Price Target Analyst Ratings General

 

Related Articles (ZBH)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Decision Time: Breaking Down What To Expect From The Fed

MenaPay Digitizing Cash In The Middle East, North Africa