Zimmer Biomet (ZBH) PT Lowered to $178 at Stifel, Keep 'Buy'

Stifel analyst Rick Wise lowered the price target on Zimmer Biomet (NYSE: ZBH) to $178.00 (from $185.00) while maintaining a Buy rating.

The analyst commented, "Reflecting on the steady stream of MedTech company announcements concerning Delta-related 3Q21 weakness, we were inclined to make modest adjustments to our ZBH model, given the company’s relatively-high elective procedure exposure. This, together with Zimmer’s recent competitor conference commentary on greater-than-anticipated COVID pressures negatively-impacting elective procedures, drove us to slightly-temper our 2H21 numbers. Specifically, we are reducing our 3Q21/4Q21 revenue estimates to $1.930B/$2.239B from $1.965B/$2.260B. Our 3Q21/4Q21 EPS forecasts also move to $1.73/$2.36 from $1.77/$2.41, bringing our full-year top-/bottom-line numbers closer to the lower-end of Zimmer’s 2021 guidance range (revenue growth: 14.5%-16.5% reported; EPS:$7.65-$7.95). While COVID headwinds could potentially-continue through 2H21, our recent physician conversations encouragingly-suggest that COVID-related elective procedure pressures might be plateauing/gradually-weakening. Notwithstanding these near-term COVID headwinds, our view on Zimmer's longer-term above-market revenue growth trajectory, driven by the ongoing ZBH transformation and potential recapture of some deferred procedure backlog, remains unchanged. TP moves to $178 from $185."

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