Home Stock Zimmer Biomet price outlook as Loop Capital initiates coverage with a buy rating

Zimmer Biomet price outlook as Loop Capital initiates coverage with a buy rating

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On Tuesday, Zimmer Biomet Holdings Inc. (NYSE:ZBH) shares advanced more than 3% after receiving a bullish rating. Loop Capital initiated coverage of ZBH with a buy rating, assigning a price target of $165 per share. The PT implies an upside potential of more than 30% based on the ZBH price of $129.26 per share as of this writing.

The firm cited the easing covid situation whilst also lauding the improving momentum from the ROSA robot. Analyst Jason Wittes also said the planned spin-off of the underperforming spine dental, as announced earlier this year, will drive growth.

The Spin-off of the new company called ZimVie is expected to complete in mid-2022.

Zimmer Biomet shares have plunged by nearly 50% since rallying to trade at a new 52-week high of $180 at the end of April. The stock is now down 15.57% this year.

Is it time to buy Zimmer Biomet shares?

From an investment perspective, Zimmer Biomet shares trade at reasonable trailing 12-month and forward P/E ratios of 30.93 and 15.62, respectively. Therefore, the stock could gain the attention of value investors.

However, analysts expect its earnings per share to plummet by more than 117% this year, before bouncing back by 8.48% next year. As a result, it may not be an ideal option for long-term growth investors.

Source – TradingView

Technically, Zimmer Biomet shares seem to have recently completed an upward breakout from a descending channel formation, preventing the stock from dropping deeper into oversold conditions.

Therefore, investors could target short-term profits at about $134.66, or higher at $140.52, while $124.51 and $119.55 are crucial support levels.

The post Zimmer Biomet price outlook as Loop Capital initiates coverage with a buy rating appeared first on Invezz.

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