Analyst Expectations For Zimmer Biomet Holdings's Future

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In the last three months, 9 analysts have published ratings on Zimmer Biomet Holdings ZBH, offering a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 6 1 0
Last 30D 0 1 1 0 0
1M Ago 0 0 2 0 0
2M Ago 0 0 0 0 0
3M Ago 0 1 3 1 0

Analysts have set 12-month price targets for Zimmer Biomet Holdings, revealing an average target of $135.0, a high estimate of $155.00, and a low estimate of $125.00. Observing a 3.39% increase, the current average has risen from the previous average price target of $130.57.

Decoding Analyst Ratings: A Detailed Look

The standing of Zimmer Biomet Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Richard Newitter Truist Securities Lowers Hold $130.00 $137.00
Steven Lichtman Oppenheimer Raises Outperform $155.00 $150.00
Vijay Kumar Evercore ISI Group Raises In-Line $130.00 $125.00
Joanne Wuensch Citigroup Raises Neutral $140.00 $134.00
Caitlin Cronin Canaccord Genuity Maintains Hold $130.00 -
Matt Miksic Barclays Raises Underweight $130.00 $120.00
Richard Newitter Truist Securities Raises Hold $135.00 $133.00
Robbie Marcus JP Morgan Raises Neutral $125.00 $115.00
Shagun Singh RBC Capital Maintains Outperform $140.00 -

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Zimmer Biomet Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zimmer Biomet Holdings compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Zimmer Biomet Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Zimmer Biomet Holdings's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Zimmer Biomet Holdings analyst ratings.

Delving into Zimmer Biomet Holdings's Background

Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants, as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two thirds of total revenue is derived from sales of large joints, another quarter comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.

A Deep Dive into Zimmer Biomet Holdings's Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Zimmer Biomet Holdings's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 6.3%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 21.61%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Zimmer Biomet Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.35%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Zimmer Biomet Holdings's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.96%, the company showcases efficient use of assets and strong financial health.

Debt Management: Zimmer Biomet Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.47, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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