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.

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.

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Disclosure: None. This article is originally published at Insider Monkey.