Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is gaining attention as one of the best undervalued medical device stocks to buy now. Needham analyst Michael Matson recently maintained a neutral rating on the company, citing its strategic decision to acquire Monogram Technologies as a key factor.
The acquisition, valued at around $168 million, is aimed at enhancing Zimmer Biomet’s robotics and enabling technologies offerings. While Matson noted that the acquisition is expected to be neutral to earnings per share between 2025 and 2027, he expressed concerns about potential interest from surgeons in a fully automated robotic system.
However, Matson also highlighted the potential benefits of the acquisition, stating that it could strengthen Zimmer Biomet’s position in the robotics space, particularly with the integration of Monogram’s AI-navigated knee arthroplasty solutions. Despite this, he maintained a cautiously neutral outlook due to uncertainties surrounding the adoption of fully autonomous systems by surgeons.
Zimmer Biomet Holdings, Inc. is known for designing, manufacturing, and marketing orthopedic reconstructive products, as well as offering biologics, extremities, sports medicine, dental implants, trauma products, and related surgical products.
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In conclusion, Zimmer Biomet Holdings, Inc. continues to make strategic moves in the medical device space, positioning itself for future growth and innovation. Investors should closely monitor developments within the company and the broader healthcare industry for potential investment opportunities.
Disclosure: None. This article was originally published on Insider Monkey.
