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."

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Shares of Zimmer Biomet closed at $127.47 yesterday.