Piper Jaffray analyst Matt O'Brien notes that Zimmer Biomet reported Q3 results that beat the Street's expectations on the top line with EPS. As far as the positives, the analyst points out that core business is benefiting from supply remediation efforts with Hips the largest beneficiary, but there is still more work ahead as the company transitions its focus toward reducing production costs in 2019. With elevated investments in driving top-line growth along with a 12-month lag of cost improvements, O'Brien continues to believe margin expansion will likely be more of a 2020 event. While he has confidence in management's leadership for driving the turnaround, the analyst awaits further evidence before becoming more constructive on the name. He reiterates a Neutral rating and $120 price target on the shares.