Latest news with #MonogramTechnologies
Yahoo
7 hours ago
- Business
- Yahoo
Zimmer (ZBH) Builds Robotics Growth Pipeline, but BofA Sees Limited Near-Term Upside
Zimmer Biomet Holdings Inc. (NYSE:ZBH) is one of the best defensive stocks to invest in according to analysts. With a decline of around 14%, Zimmer's YTD share price performance has been weak. Its management is focussing on reinvigorating growth, and in a bid to expand its robotics platform and its portfolio of navigation and enabling technologies, the company had announced the acquisition of Monogram Technologies Inc. (NASDAQ:MGRM) on July 14 for an enterprise value of $168 million. A surgeon in a modern operating theatre performing a transplant surgery with medical technology. Monogram is an orthopaedic robotics company, and Ivan Tornos, Chairman and CEO of Zimmer Biomet, expects the deal to boost his company's offerings with semi- and fully autonomous robotic technologies. On the prospects of the integration, he stated: 'Monogram's technology is a major leap forward, demonstrating our commitment to becoming the boldest and broadest innovator in surgical robotics and navigation. With Monogram's proprietary technology, Zimmer Biomet has the potential to become the first company to deliver fully autonomous capabilities and redefine both the standard of care and the future of orthopaedic surgery.' Analyst opinions over the deal have been mixed. While analysts from RBC Capital and BTIG reaffirmed their positive view, the agreement has not changed the opinion of BofA analyst Travis Steed, who reiterated a Hold rating and a $110 price target following the deal announcement. He noted that while the acquisition strengthens ZBH's position in the semi-autonomous robotics market, the financial benefits will be modest in the near term. As per the company management, the transaction will be funded through cash and available debt and is expected to be EPS neutral through 2027 and accretive thereafter. However, Steed believes the company's already strong margins limit further EPS upside, and while the move broadens ZBH's competitive edge, material revenue contributions are not expected until 2027. Zimmer Biomet Holdings Inc. (NYSE:ZBH) is a global medical technology company that designs, develops, manufactures, and markets orthopaedic products, including implants, digital and robotic solutions. While we acknowledge the potential of ZBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Most Oversold S&P 500 Stocks So Far in 2025 and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Zimmer Biomet raises 2025 outlook amid strong portfolio growth
Zimmer Biomet has lifted its 2025 profit outlook to between 6.7% and 7.7%, up from 5.7% to 8.2%, driven by strong growth in its sports medicine, extremities, trauma, craniomaxillofacial and thoracic (S.E.T) business and reduced China-related tariff impacts. The company's profits exceeded $2bn in Q2 2025, denoting a 7% rise from around $1.9bn in Q2 2024, with adjusted profits for 2025 now expected to fall between $8.10 and $8.30 per share, up from $7.90 to $8.10 previously. Zimmer's shares on the New York Stock Exchange were up 8.2% in pre-trading on 8 August to $84.26 per share – up from a close of $77.86 the previous day – following the results' announcement on 7 August. Sales in Zimmer's hips product category climbed by 5.8% in Q2 2025 to $536.1m, while knees rose by 3.1% to $826m in the quarter. However, the biggest growth in Q2 2025 was seen in Zimmer's S.E.T product category, rising by 17.3% to $550.3m. According to Zimmer, with the $1.2bn acquisition of foot and ankle trauma specialist Paragon 28 in April, S.E.T is now its second largest business. Zimmer also acquired orthopaedic robotics company Monogram Technologies for $177m in July. The company said that each acquisition aligns with its continued ambition to progress into higher-growth segments through 'disciplined M&A'. Revised headwind on China-related tariffs Zimmer previously anticipated a $60m-$80m drag on its 2025 operating profits due to the Trump administration's imposition of tariffs on goods imported from China. However, following what the orthopaedics giant called 'successful mitigation' efforts, including supply chain diversification and a reduction in China-based manufacturing activities, it now expects headwinds of $40m. During a company post-earnings conference call, Zimmer CFO Suketu Upadhyay told investors: 'Our tariff assumption is better than we originally expected as we've had more time to work through our mitigation strategies, and we're also seeing lower overall tariff rates than what were originally announced on our first quarter call.' Boston Scientific also revised its anticipated impact of tariffs in Q2 2025. Last month, Boston CFO John Monson told investors: 'Based on the current schedule of expected tariffs, we now anticipate a full-year headwind of about $100m, down from a $200m estimate.' Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "Zimmer Biomet raises 2025 outlook amid strong portfolio growth" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
19-07-2025
- Business
- Yahoo
Jim Cramer Expresses Bullishness on Zimmer's Acquisition of Monogram Technologies
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is one of the stocks on Jim Cramer's radar. Cramer discussed the company's latest acquisition announcement and commented: 'We got some sizable deals today across a bunch of different industries and some smaller ones too, like Zimmer Biomet, the medical device maker, announcing its plan to pay nearly $200 million upfront for Monogram Technologies, an orthopedics robot company with a set of semi-autonomous and fully autonomous robotic technologies that will be used to improve Zimmer's main robotics platform called Rosa Robotics. I like this because the robotics surgery space is one of the most interesting corners of the healthcare sector.' A team of medical specialists discussing orthopaedic reconstructive surgery plans. Zimmer Biomet (NYSE:ZBH) develops and markets medical technologies and orthopedic products used to treat bone, joint, and soft tissue conditions. The company's portfolio includes implants, surgical tools, and digital health solutions. Oakmark Equity and Income Fund stated the following regarding Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its second quarter 2025 investor letter: 'Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a leading medical device company and a pure play in orthopedics. In our view, orthopedics is an attractive product category that should benefit from long-term tailwinds stemming from an aging population, greater activity levels among seniors and increased adoption of specialized robotics that improve surgical efficiency. In addition, market share within the space tends to be sticky, as physicians are typically trained to use leading brands like Zimmer Biomet, reinforcing long-standing brand loyalty. New management recently completed several multi-year initiatives that we think will streamline operations and reinvigorate product innovation. The market has yet to ascribe value to these improvements, providing the opportunity to initiate a position in a dominant, growing company at a discounted valuation to peers and the broader market.' While we acknowledge the potential of ZBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-07-2025
- Business
- Yahoo
Needham Maintains a Neutral Stance on Zimmer Biomet Holdings (ZBH)
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is one of the best undervalued medical device stocks to buy now. On July 10, Needham analyst Michael Matson maintained a neutral stance on Zimmer Biomet Holdings, Inc. (NYSE:ZBH), giving the stock a Hold rating. The analyst based the rating on the company's recent strategic decision to acquire Monogram Technologies. A team of medical specialists discussing orthopaedic reconstructive surgery plans. The acquisition is valued at around $168 million and aims at boosting the company's robotics and enabling technologies offerings. Although the analyst acknowledged that the acquisition is anticipated to be neutral to earnings per share between 2025 and 2027, he expressed some reservations associated with potential interest from surgeons in a fully automated robotic system. He also stated that the acquisition may potentially bolster Zimmer Biomet Holdings, Inc.'s (NYSE:ZBH) standing in the robotics space, especially with the integration of Monogram's AI-navigated knee arthroplasty solutions. Despite this, Matson maintained a cautiously neutral outlook due to his concerns regarding the adoption of fully autonomous systems by surgeons. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) designs, manufactures, and markets orthopedic reconstructive products. It also offers biologics, extremities, sports medicine, dental implants, trauma products, and related surgical products. While we acknowledge the potential of ZBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
15-07-2025
- Business
- Yahoo
Zimmer to buy robotics firm Monogram for about $177M
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. Zimmer Biomet said Monday that it plans to buy Monogram Technologies, an orthopedics company with a robot for knee replacement procedures, for about $177 million. Monogram's mBôS robot received Food and Drug Administration clearance in March for total knee replacement surgeries. The system uses CT scans and AI navigation for orthopedic procedures. Monogram's robot will be sold with Zimmer implants in early 2027, the companies said in the announcement. They expect the merger to close later this year, if approved by regulators and Monogram's shareholders. The Monogram acquisition is expected to give surgeons more options and grow Zimmer's orthopedic robotics portfolio. Currently, Zimmer sells its Rosa robot, which is designed for imageless surgeries, or can use 2D X-rays to help with surgical planning. Monogram's robot, by contrast, uses CT imaging and offers predictive navigation. Monogram is working on a fully autonomous version of the robot and securing additional applications beyond total knee surgery. Zimmer CEO Ivan Tornos said the acquisition will give Zimmer 'the most comprehensive and flexible technology ecosystem' to support surgeons' varying preferences, and the combined firm will have 'the potential to become the first company to deliver fully autonomous capabilities and redefine both the standard of care and the future of orthopedic surgery." Zimmer will buy all of Monogram's outstanding shares for $4.04 per share in cash upfront, for a total equity value of about $177 million and an enterprise value of approximately $168 million. Monogram's shareholders will also be able to receive up to $12.37 per share in common stock if certain development, regulatory and revenue milestones are met through 2030. Both companies' boards have approved the deal. Monogram's shares increased by more than 75% to $5.78 in Monday morning trading. Zimmer has been working to grow its robotics business through new indications and acquisitions. Last year, Zimmer received 510(k) clearance for its Rosa shoulder system and partnered with Think Surgical, which makes a wireless handheld robotic knee surgery device. Zimmer expects the Monogram purchase will contribute to revenue growth starting in 2027 and be neutral to earnings per share in the first three years. The deal is expected to be accretive to earnings starting in 2028. The Monogram deal follows Zimmer's proposal to acquire Paragon 28 for $1.1 billion, which closed in April. Recommended Reading Monogram robot wins FDA OK; Vicarious hit by supplier woes Sign in to access your portfolio
