Kaufman Bros. Starts Zimmer Holdings (ZMH) at Hold; Full Exposure to Weak Ortho Market

Kaufman Bros. initiates coverage on Zimmer Holdings (NYSE: ZMH) with a Hold. PT $57.00.

Kaufman analyst says, "With a now more lackluster orthopaedic market growth outlook, where Zimmer is 100% levered, with hip and knees expected to grow in the low-single digits on lingering procedural volume softness and the ensuing pricing pressures, we believe Zimmer's business model does not provide for meaningful product portfolio risk diversification. It also presents leverage risks, particularly as management balances gross margin pressures with its ongoing restructuring activities (some of which are longer term in nature vs. easier lifts from corporate de-layering activities) vis-à-vis still required business reinvestments in sales and marketing and R&D."

For more ratings news on Zimmer Holdings click here and for the rating history of Zimmer Holdings click here.

Shares of Zimmer Holdings closed at $55.46 yesterday.

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