Zimmer Biomet Holdings Gets a Hold Rating from Canaccord Genuity

By Jason Carr

Canaccord Genuity analyst Kyle Rose maintained a Hold rating on Zimmer Biomet Holdings (NYSE: ZBH) today and set a price target of $121. The company’s shares opened today at $106.42, close to its 52-week low of $104.28.

Rose said:

“We are updating our model to reflect Zimmer’s adoption of several previously disclosed new accounting standards (revenue recognition for customer contracts, reporting of pension costs, and hedging activities). The company adopted the changes effective January 1, 2018, and recently provided updated historical financials (for 2016 and 2017) to reflect a retrospective adoption of the new standards. While the new accounting policies have not resulted in any material changes to 2016 and 2017 historical results, we have nonetheless updated our model to reflect how the company will report moving forward. Additionally, we have also tweaked our forward estimates to incorporate a slightly more conservative revenue ramp in 2018/2019 and higher COGS and operating spend related to the quality/manufacturing remediation and sales channel incentives/ investments. Thus we maintain our HOLD rating and lower our price target to $121.”

According to TipRanks.com, Rose is a 4-star analyst with an average return of 10.6% and a 54.4% success rate. Rose covers the Healthcare sector, focusing on stocks such as Obalon Therapeutics Inc, Smith & Nephew Snats, and Stryker Corporation.

Zimmer Biomet Holdings has an analyst consensus of Strong Buy, with a price target consensus of $142.25.

The company has a one-year high of $133.49 and a one-year low of $104.28. Currently, Zimmer Biomet Holdings has an average volume of 1.27M.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ZBH in relation to earlier this year. Most recently, in February 2018, Larry Glasscock, a Director at ZBH bought 485 shares for a total of $35,206.

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Zimmer Biomet Holdings, Inc. designs, manufactures and markets orthopaedic reconstructive products, sports medicine, extremities and trauma products; craniomaxillofacial and thoracic products; dental implants; and related surgical products. The company operates through three geographical segments: America, Europe and Asia Pacific.