Zimmer Biomet (ZBH) is positioned for a beat and raise with its "conservative" 2026 guidance amid focus on its US sales force transformation, RBC Capital Markets said in a Tuesday report.

"ZBH delivered a beat on both sales and EPS in Q4 and issued initial 2026 guidance that appears conservative," the note said.

The report said the guidance was below consensus, driven by its US sales force transformation and conservatism. It expects the overhaul to generate a durable growth upon completion.

"The conservative 2026 guidance, and steps to drive deeper commercial competitiveness on the back of strong 5.7% y/y growth in critical US business...is a step in the right direction," the note said.

RBC reiterated its outperform rating and price target of $101.

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