Zimmer Biomet Holdings, Inc.

Investment Thesis

We initiate Zimmer Biomet with a BUY and a blended target of USD 117.80, about 23.5% upside. The stock trades at 10.88x forward earnings versus a peer median near 12x, reflecting investor doubt after a history of supply constraints, ERP disruptions, and integration challenges. That discount is only partly justified: the market is placing too much weight on past execution failures and underweighting recent financial and operational progress.