I was honestly pretty conflicted about Zimmer Biomet (ZBH) (“Zimmer”) when I last wrote about the company. The main source of my conflict was that I thought sell-side expectations of Zimmer emerging as a share-gainer in the orthopedic space (knees and hips, specifically) could be a little inflated, or at least premature, but the valuation wasn’t bad.
Since then, the shares have more or less matched the broader medical device space, underperforming Stryker (SYK), which I still think is a better company, and outperforming Johnson & Johnson (JNJ), which I think suffers from a split focus at the highest management levels. At this point, I’m still pretty ambivalent about the share price potential – the total return potential isn’t what I typically like to see, but it’s not bad on a relative basis, and I still see possibilities for Zimmer to outperform. All in all, I think it’s a story that will be driven by management execution, and so far that has been a favorable driver.
Read the full article:
Zimmer Biomet Sees Some Pandemic-Related Turbulence, But Continues Its Self-Improvement Drive
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