In a report issued on August 27, Ryan Zimmerman from BTIG maintained a Hold rating on Zimmer Biomet Holdings (NYSE: ZBH). The company’s shares closed yesterday at $125.98, close to its 52-week high of $129.34.
Zimmerman noted:
“Neutral ZBH revealed that the company has received a the FDA. The Warning Letter is related to observed non-conformities with current good manufacturing practice requirements at ZBH’s North Campus facility in Warsaw, Indiana. Consistent with our thesis (here), we felt that there was continued risk associated with the North Campus facility. Even with steps taken to remediate the form 483 observations, ZBH’s tone in public disclosures toward the FDA gave us concern because ZBH felt that it had exhausted all options for quality remediation. Letter disclosure today, ZBH will have to take further steps toward remediation (unknown at this time) and the FDA could take further actions that may impact ZBH financials.”
According to TipRanks.com, Zimmerman is a 5-star analyst with an average return of 32.0% and a 73.3% success rate. Zimmerman covers the Healthcare sector, focusing on stocks such as Integra Lifesciences, OrthoPediatrics Corp, and Stryker Corporation.
Zimmer Biomet Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $138.38.
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Zimmer Biomet Holdings’ market cap is currently $25.62B and has a P/E ratio of 15.02. The company has a Price to Book ratio of 2.13.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Tony Collins, the VP, Contr & CAO of ZBH sold 2,778 shares for a total of $349,359.
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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.
