Jefferies Raises Price Target on Zimmer Biomet Holdings (ZBH) Following 2Q

Jefferies reiterated a Buy rating on Zimmer Biomet Holdings (NYSE: ZBH), and raised the price target to $150.00 (from $135.00), following the company's 2Q earnings report. GM was down 60bp, though OM was up 160bp as spending in SG&A was down 220bp. ZBH reported an EPS beat with $2.02 v. $1.97.

Analyst Raj Denhoy commented, "2Q was encouraging. Overall organic revenue growth after adjusting for the extra selling day was about +2.5%, which was better than the +1.7% we modeled. Moreover, guidance for 2H implies growth will accelerate further— more evidence that ZBH is well on track to return to market growth this year. There were soft spots, US ortho was a little weaker and GMs were light, but other areas more than offset. ZBH remains a Jef Franchise Pick."

For an analyst ratings summary and ratings history on Zimmer Biomet click here. For more ratings news on Zimmer Biomet click here.

Shares of Zimmer Biomet closed at $127.47 yesterday.

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