Zimmer Biomet (ZBH) PT Raised to $150 at Oppenheimer Due to MyMobility App Digital Health

Oppenheimer analyst Steven Lichtman raised the price target on Zimmer Biomet (NYSE: ZBH) to $150.00 (from $138.00) while maintaining a Outperform rating citing COVID-19, solid pull-through, Persona Revision launch, a push into telehealth with the mymobility app, strong demand for ROSA, and low capex exposure.

The analyst stated "ZBH's 2Q20 results came in well above estimates, led by a steeper than expected recovery from COVID-19 headwinds. Mgmt noted a strong recovery during 2Q (April -70% y/y and June -13.5% on a days-adjusted basis) and is cautiously optimistic ahead. Management believes hospitals are better prepared for the increased COVID-19 cases seen in several states. We also believe an increase in outpatient/ ASC procedures is supportive of recovery. ZBH is tracking well against its cost restructuring plans (targets ≥30% op margin in 2023). Rosa robotic knee placements have been solid; we look for pullthrough of implants ahead. We see upside drivers from M&A (we expect activity to pick up) and from Rosa launches in hips and spine."

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