Zimmer Biomet (ZBH) PT Lowered to $117 at BTIG

BTIG analyst Ryan Zimmerman lowered the price target on Zimmer Biomet (NYSE: ZBH) to $117.00 (from $123.00) while maintaining a Buy rating.

The analyst comments "We maintain our Buy and reduce our PT to $117 following 1Q25 results. ZBH reported revenue and adj. EPS of $1.909B (1.1% Y/Y, 2.3% xFx, ~3.8% xFx day-adjusted) and $1.81, respectively, in-line and slightly above Cons. ests. of $1.895B and $1.77. Growth within S.E.T., Knees, and Hips were offset by declines in Tech & Data, Bone Cement, and Surgical. FY25 guidance calls for reported growth of 5.7% Y/Y - 8.2% Y/Y (1.0% Y/Y - 3.5% Y/Y prior) as Fx becomes more favorable and ZBH adds contributions from Paragon 28 (earlier than originally expected). Organic xFx growth was maintained at 3.0% Y/Y - 5.0% Y/Y with some pacing dynamics between 2Q and 3Q due to the timing of EMEA orders. Relative to peers, ZBH Knee and Hip growth fell below Stryker (SYK, Buy, $403 PT) and Johnson & Johnson (JNJ, Not Rated) on a 2-year stack basis, which continues to be the main variable to a recovery in shares (in our view). We would note that 1Q25 lacks contributions from multiple new products which ZBH intends to launch through FY25 which should lift growth through FY25. While we continue to believe ZBH's risk/reward remains favorable at current valuation, the nagging impact of tariffs into FY26 remains an open-ended question. ZBH's inventory levels suggest that tariffs will show up more meaningfully in FY26. ZBH has offsets but without clarity on the exact impact, shares may carry increased risk especially with the step-up in growth in 2H25."

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