Canaccord Genuity Boosts Price Target on Zimmer Holdings; Maintains “Buy” Rating (ZMH)
Citing strong fourth quarter results and exciting new products that should build momentum in the next two years, Canaccord Genuity raised its price target on surgical products maker Zimmer Holdings, Inc. (ZMH).
The analysts now see shares reaching $87, up from the previous target of $78. The new target suggests an +18% upside to Friday’s closing price of $74.47. The firm backed its “Buy” rating on ZMH.
A Canaccord Genuity analyst noted, “We reiterate our BUY rating following Q4/12 results with revenues and pro forma EPS outperforming our and Street expectations. US knees outperformed and US hips were in line with our expectations. Extremities and other surgical products were also strong in the Q4/12. While US knees growth came on easy comps and did not see growth reflective of the broader ortho industry, a major new product cycle is
positioned to drive 2013 and beyond. Further restructuring initiatives combined with share buybacks should continue to drive margin improvement and EPS.”
Zimmer Holdings shares were flat during pre-market trading on Monday. The stock is up +17.53% over the past year.
The Bottom Line
Shares of Zimmer Holdings (ZMH) have a dividend yield of 0.98% based on Friday’s closing price of $73.47.
Zimmer Holdings, Inc. (ZMH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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