Raymond James Downgrades Zimmer Biomet (ZBH) to Market Perform

Raymond James analyst Jayson Bedford downgraded Zimmer Biomet (NYSE: ZBH) from Outperform to Market Perform.

The analyst comments: "We are downgrading ZBH to Market Perform (from Outperform) on our view that revenue growth will remain challenged, and with margins optimized, a slower revenue growth profile will temper EPS growth. The publicly stated desire to diversify the portfolio through acquisitions will create a less consistent EPS growth profile, as modest dilution tied to “growthier” deals will also impact the cadence of EPS growth. This is not a new observation, but with an organic revenue growth profile in the 3-4% range, EPS leverage becomes more difficult. Our historically constructive stance hinged on both consistent growth and valuation. We are less confident in the growth profile, and do not see valuation alone as sufficient reason to stay positive."

For an analyst ratings summary and ratings history on Zimmer Biomet click here. For more ratings news on Zimmer Biomet click here.

Shares of Zimmer Biomet closed at $92.65 yesterday.

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