BTIG downgraded Zimmer Biomet Holdings to Neutral from Buy, citing weak growth momentum and limited catalysts to drive shares higher in the near term.
The brokerage removed its $112 price target and said it does not expect meaningful stock gains over the coming quarters despite ongoing efforts to improve growth and profitability.
Zimmer Biomet’s organic revenue growth has slowed over the past eight quarters and is expected to remain in the low single-digit range of 1% to 3% in 2026, in line with company guidance. BTIG said this slowdown is already reflected in the stock, which trades at about 10.5x forward earnings, below peers.
The firm flagged limited support from new products. While the company launched 22 products in 2025 and plans eight more in 2026, BTIG said these additions have not translated into stronger growth, with market reception described as average.
It also pointed to weaker-than-expected performance from Paragon 28, acquired in 2025, which has led to lower contribution expectations for 2026.
Operational changes add further uncertainty. Zimmer Biomet is transitioning its U.S. salesforce to a direct model, a move expected to continue through 2027. BTIG said the shift could cause near-term disruption even if it improves growth over the longer term.
The brokerage added that investments in technologies such as autonomous robotics are unlikely to influence the stock until commercialization, expected around late 2027 or early 2028.
source https://www.investing.com/news/stock-market-news/btig-downgrades-zimmer-biomet-sees-limited-upside-amid-growth-challenges-4575668
