Patterson Companies (PDCO) PT Lowered to $39 at Evercore ISI
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Evercore ISI analyst Ross Muken lowered estimates and his price target on Patterson Companies (NASDAQ: PDCO) to $39 (from $46) following weak results and outlook.
Muken commented, "PDCO’s steep correction today post challenging results and the surprising SIRO news seems sensible to us, assuming management has a handle on the market slowdown and the transition to multiple technologies vs. CEREC exclusively in CAD / CAM. While over the long-term this is likely the best for PDCO from a strategic positioning perspective the near-term risk to the forecast and drag on EPS is certain to keep shares stuck in neutral. The real difficulty here is that the transition is occurring during a market slowdown for NA dental consumables and a challenging period for animal drug price inflation (with investment also ramping vs. ability to offset headwind via cost cuts). Although some of this headwind is likely temporal, we will probably not get clarity into the outlook for 2018 and beyond until next Q at the earliest. That leaves an uncertainty gap whereby the multiple is probably going to remain constrained. Furthermore with rates moving up, some of the benefit of tax reform is likely to be washed away in valuation (higher WACC – downward pressure on EV / EBITDA). Given these factors / pressures we reiterate our Hold rating and await a better entry point for shares post an improvement in visibility (de-risking of medium-term profit outlook)."
The firm cut FY 2017 EPS from $2.65 to $2.32, FY 2018 EPS from $2.80 to $2.35 and FY 2019 EPS from $3.10 to $2.55.
Shares of Patterson Companies closed at $47.51 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
- MKM Partners Raises Price Target on Arista Networks (ANET) Following U.S. Customs and Border Protection Approval
- Sigma Designs (SIGM): Revenue Headwinds Drive PT Cut - Baird
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!