Zimmer Biomet Holdings Inc
ZBH: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$189.00 | Bxqzw | Jlrbwprtz |
Zimmer Biomet Is Well Positioned for the Postpandemic Environment; No Change to Our FVE
Business Strategy and Outlook
With the addition of Biomet, Zimmer is the undisputed king of large joint reconstruction, by far. We expect favorable demographics, which include aging baby boomers and rising obesity, to fuel solid demand for large-joint replacement that should offset price declines. However, Zimmer stumbled into a series of pitfalls in 2016-2017, including integration issues, supply and inventory challenges, and quality concerns. New management's efforts to turn around the firm have been admirable, but the pandemic has put a damper on progress.