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Piper Sandler has downgraded Zimmer Biomet (NYSE:ZBH) to neutral, citing a lack of near-term catalysts.
The investment bank said it sees “limited” upside to large joint estimates for the second half of the year and 2025. It also noted the company is facing increased competition in the robotics market from Johnson & Johnson (JNJ) and Globus Medical (GMED).
Piper said its view could be wrong “if the mix benefits in knees, new products, or attractive deal-making occur.”
“We certainly acknowledge the modest valuation where the stock currently trades, but we simply see better large-cap diversified names to own right now, such as Boston Scientific (BSX), Stryker (SYK) and Teleflex (TFX),” the analysts added in their note.
Piper lowered its price target to $115 from $140.