NEW YORK (AP) ¿ Shares of Zimmer Holdings Inc. traded higher Monday after a Sanford Bernstein analyst upgraded the orthopedic implant maker, saying a series of new product launches should lead to a recovery in revenue and share price. Analyst Derrick Sung said new products, including two knee implants launched last year and two hip products that will reach the market in late 2009, will boost Zimmer's profits. He thinks the Kalamazoo, Mich., company will regain some market share, and expects improvement for the orthopedic market overall. Sung upgraded the shares to "Outperform" from "Market Perform," and raised his price target to $61 per share from $52. In afternoon trading, the stock gained $1.51, or 3 percent, to $52.63. The stock traded at a high of $72.84 a year ago, and reached an annual low of $30.67 on March 6. While some people chose to delay orthopedic procedures due to the recession, Sung said conditions for implant makers are not getting much worse, with procedures rising about 4 percent in each of the last two quarters. He added that the postponed operations will eventually be performed after the economy is clearly improves, leading to stronger growth for Zimmer and its peers. He said signs of economic recovery should be apparent in late 2010.
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