ZIMV - ZimVie: Guidance Suggests Company Fairly Valued At The Moment (Rating Downgrade)

2024-06-04 00:02:20 ET

Summary

• A closer look at ZimVie's financial performance shows a continued decline in topline sales.
• Despite strong adj. EBITDA performance in Q1/24, the company is guiding to a YoY decline in adj. EBITDA for the full year.
• Based on updated financial guidance and forecasts, ZIMV appears fully valued at 10x Fwd EV/adj. EBITDA.

Back in December, I upgraded ZimVie Inc. ( ZIMV ) to a buy after news of the company selling off its spine implants business to focus solely on dental implants. With the sale, ZIMV was able to significantly reduce outstanding debt and the resulting company appeared to be attractively valued compared to dental implant-focused peers....

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