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Zimmer Biomet on the Street: How the Analysts Are Leaning

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Analyst recommendations for ZBH stock

Zimmer Biomet Holdings (ZBH) is one of the major medical device players in the United States and has a leading portfolio of musculoskeletal products. But it announced disappointing 3Q17 earnings results on November 1, 2017, and lowered its fiscal 2017 guidance.

However, it’s now recuperating well and is expected to strengthen its performance in the near term. In this part of our series, we’ll take a look at the recommendations and target prices for ZBH by Wall Street analysts for the next 12 months.

As of December 27, 2017, based on a Reuters survey consisting of 28 investment research firms, ZBH stock has a “buy” recommendation from 19 (~68%) analysts, while 9 (32%) recommend a “hold.” No analyst has issued a “sell” recommendation for ZBH stock.

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Analyst consensus target prices

As of December 27, 2017, the consensus 12-month target price provided by Wall Street analysts for ZBH stock is $133.80. This target price amounts to a return potential of 11.4% for a 12-month investment in ZBH stock, based on its closing price of $112.16 on December 26, 2017.

By comparison, peers Abbott Laboratories (ABT), Medtronic (MDT), and Stryker (SYK) have analyst consensus target prices of $61.88, $90.06, and $160.3, respectively, for the next 12 months. These prices represent potential 12-month returns of 7.7%, 10.2%, and 3%, respectively.

Revised ratings and recommendations

On December 21, 2017, Oppenheimer reaffirmed its “buy” recommendation for ZBH stock. The same day, Jefferies maintained its “buy” recommendation with a target price of $140.

On December 19, 2017, Goldman Sachs upgraded its rating of ZBH stock from “sell” to “hold,” with a target price of $125 on the stock. The same day, Wells Fargo updated its view of the stock to “buy.”

Notably, the iShares Russell 1000 Value ETF (IWD) has ~0.19% of its total portfolio holdings in Zimmer Biomet Holdings.

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