TD Cowen has begun formal coverage of Zimmer Biomet Holdings, Inc. (NYSE: ZBH), assigning a Buy rating and setting a price target of $109.00, a level the firm says represents roughly a 25% increase from the prevailing market price of $87.32.
According to InvestingPro data cited by the firm, that target is in line with analyst consensus and signals that Zimmer Biomet may be trading below its perceived intrinsic value. TD Cowen's initiation emphasizes a view that the company’s growth trajectory and profitability outlook have improved even though management and operations have experienced "very visible execution issues" in the past.
TD Cowen highlighted a number of financial metrics to support its stance. Zimmer Biomet’s reported gross profit margin sits at 71.6%, and the company recorded positive revenue growth of 5.5% over the last twelve months. Those figures are presented by the firm as evidence of solid underlying financial performance amid earlier execution challenges.
Matthew Blackman, the TD Cowen analyst leading the coverage, characterized the company as having been "playing defense" in recent periods. Blackman noted that Zimmer Biomet is now addressing portfolio gaps and accelerating the introduction of new products to market. The analyst framed recent management behavior as more conservative in its public outlook messaging, a shift he suggested could help restore investor confidence.
TD Cowen expressed optimism that with "the offense now taking the field," Zimmer Biomet could see both upward price movement and expansion in valuation multiples. That view rests on the combination of the company’s financial profile and its pipeline activities moving into commercialization phases.
Separately, Zimmer Biomet’s Board of Directors approved a quarterly cash dividend of $0.24 per share for the fourth quarter of 2025, with payment expected around January 30, 2026. The company also announced an exclusive collaboration with OneStep to integrate mobility intelligence technology into its mymobility Care Management Platform, a move designed to enhance patient recovery tracking through smartphone-based tools.
On the product front, Zimmer Biomet received FDA clearance for ROSA Knee with OptimiZe, an updated robotic-assisted knee replacement system intended to improve surgical accuracy. These product and partnership developments align with TD Cowen’s view that the company is beginning to bring new solutions to market after a period focused more on defense and stabilization.
Analyst opinions remain mixed. Baird lowered its rating on Zimmer Biomet from Outperform to Neutral, citing concerns about market share in hip and knee replacements even as new products have been well received. In contrast, Stifel maintained a Buy rating, noting positive feedback from orthopedic surgeons and a promising innovation pipeline.
Taken together, the initiation by TD Cowen and the recent corporate actions underscore a pivotal phase for Zimmer Biomet in which execution, product commercialization, and market share dynamics will be watched closely by investors and industry observers.