Zimmer Biomet wins price target raise at Roth

Roth Capital Markets analyst Jason Wittes raised his price target on Zimmer Biomet Holdings (Zimmer Biomet Holdings Stock Quote, Chart, News, Analysts, Financials NYSE:ZBH) to $135 and maintained a “Buy” rating in a July 15 report, citing the company’s acquisition of Monogram Technologies as a key move to close a gap in its robotics capabilities.

Wittes said the deal strengthens Zimmer Biomet’s core large joint business and better positions it to compete with Stryker’s MAKO robotic system. He added that the recent acquisition of Paragon 28 also signals a shift toward higher-growth opportunities, similar to the path Stryker began two decades ago. The new price target is based on 16 times Roth’s 2026 EPS estimate of $8.34, up from the previous $115 target based on 14–15 times the 2025 estimate of $7.90.

Zimmer Biomet, based in Warsaw, Indiana, develops medical technology for joint replacement, sports medicine, trauma care, and bone reconstruction. Its products include knee and hip implants, surgical tools, robotic systems, and bone cement. The company serves surgeons, hospitals, and healthcare providers globally. Founded in 1927, it adopted its current name in 2015.

The Monogram deal includes an initial $177-million in cash, or $4.04 per share, roughly in line with Roth’s standalone target for Monogram. It also includes a non-tradable contingent value right (CVR) worth up to $12.37 per share, potentially raising the total value to $750-million.

“We picked up coverage of Monogram (MGRM–Buy) this past December, believing it was one of the few emerging robotics platforms that could potentially challenge SYK’s dominance in orthopedic robotics with MAKO,” Wittes said.

He pointed to Monogram’s mBôs platform, which uses AI to guide precise bone cutting and personalization—two areas Roth sees as central to MAKO’s leadership, which they estimate accounts for about 80% of robotic knee surgeries. Zimmer Biomet’s own ROSA platform, launched in 2020, now has over 2,000 installations.

“However, we see ROSA as severely lacking in both preparation and personalization, and a major reason for ZBH share stagnation in large joints,” Wittes said. “While ZBH was slowly catching up on improving ROSA’s ability to deliver personalized surgery, including the recent launch of CT-based planning (facilitating a more kinematic approach to knee surgery), SYK’s strong IP portfolio placed a significant barrier on ROSA’s hand-based cutting ability.”

Wittes said much of that IP centers on the use of haptics and feedback to guide a surgeon’s hand.

“mBôs takes a fully automated approach to cutting, eliminating the need for haptics, which not only gets around SYK’s IP fortress around hand-based cutting (which so far has been a limiting factor for competing robotic designs), but also creates a strong IP fortress around fully autonomous cutting,” he said. “In addition, mBôs utilizes advanced AI planning, which allows for inter-operative adjustments to streamline personalization, which we see as rivalling MAKO’s current capabilities.”

Once the deal closes, Zimmer Biomet said it expects to become the first orthopedic company to offer a fully autonomous surgical robot.

“Monogram’s technology is a major leap forward, demonstrating our commitment to becoming the boldest and broadest innovator in surgical robotics and navigation,” said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet, in a press release announcing the acquisition. “Upon closing, our customer-centric portfolio will consist of the most comprehensive and flexible technology ecosystem to support the varying preferences of a vast array of surgeons, now and into the future. 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 orthopedic surgery.”

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