UPDATE: Morgan Stanley Starts Patterson Companies (PDCO) at Equalweight

Morgan Stanley analyst Erin Wright initiates coverage on Patterson Companies (NASDAQ: PDCO) with a Equalweight rating and a price target of $30.00.

The analyst comments "As one of the largest dental and animal health distributors in North America, PDCO is highly levered to broader trends across the more modestly growing (+low-mid single digits) dental market (38% of sales; ~60% of operating income), balanced by a robust animal health market (+5-7%). Following several missteps in 2016/2017 that contributed to share loss, new management implemented initiatives to stabilize and enhance its market position. Going forward, continuing efforts to enhance product mix (tech, software services), greater private label penetration, as well as incremental capital deployment should support its longer term turnaround story. We forecast it will achieve more consistent topline growth at or ahead of the industry, with productivity initiatives supporting high-single digit EPS growth over the longer term. Accretive M&A activity, which we view as increasingly likely NT, could drive upside to our estimate."

For an analyst ratings summary and ratings history on Patterson Companies click here. For more ratings news on Patterson Companies click here.

Shares of Patterson Companies closed at $28.33 yesterday.

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