Challenging Growth and Market Pressures Lead to Hold Rating for DENTSPLY SIRONA

Goldman Sachs analyst Nathan Rich has maintained their neutral stance on XRAY stock, giving a Hold rating today.

Nathan Rich has given his Hold rating due to a combination of factors that suggest a challenging growth path for DENTSPLY SIRONA. The company has been experiencing softer end-market demand than anticipated, particularly in Germany, which is projected to continue affecting its organic growth and earnings per share (EPS) trajectory through 2026. Despite slight sequential improvements in procedure volumes, the overall negative drag from Germany, especially in capital equipment sales, cannot be overlooked. In addition to market pressures, DENTSPLY SIRONA’s recent performance, with organic growth falling below consensus expectations, indicates a difficult environment for the company to navigate.

Rich’s assessment considers the company’s potential to reach an EPS of $3 by 2026, contingent on achieving over 4% organic growth driven by factors such as a rebound in implant sales, strong clear aligner growth, and improvements in equipment sales. However, considering the slowing market for peers in the implant segment and competitive headwinds, Rich remains skeptical about this optimistic scenario. His revised model predicts a more modest organic growth rate of approximately 2.7% over the next two years, leading to an adjusted EPS forecast of $2.45 that includes the benefits of cost savings and SKU rationalization. This tempered outlook on the company’s financial prospects supports the Neutral, or Hold, rating.

In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $32.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

DENTSPLY SIRONA (XRAY) Company Description:

DENTSPLY SIRONA, Inc. engages in the design, manufacture, sales, and distribution of professional dental products and technologies. It operates through the Technologies and Equipment, and Consumables segments. The Technologies and Equipment segments comprises dental technology, equipment, and healthcare consumable products such as dental implants, laboratory dental products, computer-aided design and computer-aided manufacturing systems, imaging systems, treatment centers, and consumable medical device products. The Consumables segment offers preventive, restorative, instruments, endodontic, and orthodontic dental products. The company was founded in 2016 and is headquartered in York, PA.