DENTSPLY SIRONA: A Buy Rating with Positive Long-Term Growth Prospects Despite Short-Term Challenges

Michael Petusky, an analyst from Barrington, maintained the Buy rating on DENTSPLY SIRONA (XRAY – Research Report). The associated price target was lowered to $38.00.

Michael Petusky has given his Buy rating due to a combination of factors, despite some challenges faced by DENTSPLY SIRONA in the recent quarter. While the company’s net sales fell slightly short of estimates and showed a year-over-year decline, there were still positive aspects such as the growth in the U.S. market. Additionally, the orthodontic and implant solutions segment outperformed expectations, indicating areas of strength within the company’s diverse portfolio. Petusky’s outlook is also bolstered by the company’s ability to meet adjusted EPS consensus estimates and a solid performance in the Wellspect Healthcare division.

Furthermore, Petusky’s reduced yet sustained price target of $38, down from $41, is underpinned by attaching a 13.5x multiple to the FY/24 adjusted EBITDA estimate, which reflects confidence in the company’s financial prospects. The maintenance of the Outperform rating despite lowering the revenue guidance suggests a belief in the company’s long-term growth potential, underlined by a projected long-term EPS growth rate of 10%. This, combined with a substantial upside to the price target and an attractive dividend yield, leads to the conclusion that DENTSPLY SIRONA’s stock holds potential for investors, warranting the Buy recommendation.

In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $36.00 price target.

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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.