Roth Capital Markets analyst Jason Wittes raised his worth goal on Zimmer Biomet Holdings (Zimmer Biomet Holdings Inventory Quote, Chart, Information, Analysts, Financials NYSE:ZBH) to $135 and maintained a “Purchase” score in a July 15 report, citing the corporate’s acquisition of Monogram Applied sciences as a key transfer to shut a niche in its robotics capabilities.
Wittes mentioned the deal strengthens Zimmer Biomet’s core giant joint enterprise and higher positions it to compete with Stryker’s MAKO robotic system. He added that the current acquisition of Paragon 28 additionally alerts a shift towards higher-growth alternatives, just like the trail Stryker started twenty years in the past. The brand new worth goal is predicated on 16 occasions Roth’s 2026 EPS estimate of $8.34, up from the earlier $115 goal based mostly on 14–15 occasions the 2025 estimate of $7.90.
Zimmer Biomet, based mostly in Warsaw, Indiana, develops medical know-how for joint substitute, sports activities drugs, trauma care, and bone reconstruction. Its merchandise embrace knee and hip implants, surgical instruments, robotic programs, and bone cement. The corporate serves surgeons, hospitals, and healthcare suppliers globally. Based in 1927, it adopted its present title in 2015.
The Monogram deal consists of an preliminary $177-million in money, or $4.04 per share, roughly consistent with Roth’s standalone goal for Monogram. It additionally features a non-tradable contingent worth proper (CVR) value as much as $12.37 per share, doubtlessly elevating the full worth to $750-million.
“We picked up protection of Monogram (MGRM–Purchase) this previous December, believing it was one of many few rising robotics platforms that would doubtlessly problem SYK’s dominance in orthopedic robotics with MAKO,” Wittes mentioned.
He pointed to Monogram’s mBôs platform, which makes use of AI to information exact bone chopping and personalization—two areas Roth sees as central to MAKO’s management, which they estimate accounts for about 80% of robotic knee surgical procedures. Zimmer Biomet’s personal ROSA platform, launched in 2020, now has over 2,000 installations.
“Nevertheless, we see ROSA as severely missing in each preparation and personalization, and a significant motive for ZBH share stagnation in giant joints,” Wittes mentioned. “Whereas ZBH was slowly catching up on enhancing ROSA’s potential to ship customized surgical procedure, together with the current launch of CT-based planning (facilitating a extra kinematic method to knee surgical procedure), SYK’s robust IP portfolio positioned a major barrier on ROSA’s hand-based chopping potential.”
Wittes mentioned a lot of that IP facilities on the usage of haptics and suggestions to information a surgeon’s hand.
“mBôs takes a completely automated method to chopping, eliminating the necessity for haptics, which not solely will get round SYK’s IP fortress round hand-based chopping (which thus far has been a limiting issue for competing robotic designs), but in addition creates a robust IP fortress round totally autonomous chopping,” he mentioned. “As well as, mBôs makes use of superior AI planning, which permits for inter-operative changes to streamline personalization, which we see as rivalling MAKO’s present capabilities.”
As soon as the deal closes, Zimmer Biomet mentioned it expects to turn into the primary orthopedic firm to supply a completely autonomous surgical robotic.
“Monogram’s know-how is a significant leap ahead, demonstrating our dedication to changing into the boldest and broadest innovator in surgical robotics and navigation,” mentioned Ivan Tornos, Chairman, President and CEO of Zimmer Biomet, in a press launch saying the acquisition. “Upon closing, our customer-centric portfolio will include essentially the most complete and versatile know-how ecosystem to assist the various preferences of an enormous array of surgeons, now and into the long run. With Monogram’s proprietary know-how, Zimmer Biomet has the potential to turn into the primary firm to ship totally autonomous capabilities and redefine each the usual of care and the way forward for orthopedic surgical procedure.”
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