03:58 PM EDT, 05/31/2024 (MT Newswires) -- Zimmer Biomet's ( ZBH ) limited exposure to high-growth markets underpins revenue concerns, UBS Securities said in a report emailed Friday.

If the company can sustain a mid-single-digit sales growth profile and its long-range plans for earnings growth, "our sell rating will likely prove wrong," UBS said.

Questions persist on the potential growth rate of orthopedics markets post-COVID and the medical technology company's ability to gain market share even as management outlined a solid strategy to achieve sustainable revenue gains, the report said.

"Management was transparent about the goal for continued portfolio management to drive higher revenue exposure toward faster-growth growth end markets, as well as leveraging a revitalized innovation engine, but this could take time to prove out," UBS said.

UBS maintained a sell rating on Zimmer Biomet ( ZBH ) with a price target of $112.

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