ZBH Stock Forecast & Price Target

Zimmer Biomet Holdings is projected to achieve 2025 sales of $7.85 billion, reflecting a year-over-year increase of 4.0% excluding foreign exchange impacts, alongside an adjusted EPS of $8.23, which marks a 2.9% annual growth. The company's strategic focus on high-growth end markets has resulted in positive sales trends, particularly in large joints, with notable gains from product launches and the ROSA surgical technology. Furthermore, expectations for operating margin expansion, bolstered by the recent ZimVie spin-off, position Zimmer Biomet favorably for ongoing profitability improvements and sustained growth.

Zimmer Biomet Holdings faces a negative outlook characterized by slowing revenue growth projected at 2% or less, largely attributed to disappointing sales from its ROSA robot and new product launches, coupled with anticipated margin contractions. The company's earnings expectations have been downgraded, with adjusted EPS guidance set at $8.25, falling below the consensus estimate of $8.56, influenced by currency headwinds and the dilutive effect of the Paragon acquisition. Additionally, there are significant risks including a sluggish orthopedic market, pricing pressures on implants, and potential challenges in integrating acquisitions, all of which could further strain financial performance.