Stifel Cautious on DENTSPLY SIRONA (XRAY)

February 9, 2021 9:27 AM EST
Get Alerts XRAY Hot Sheet
Price: $66.25 +1.18%

Rating Summary:
    12 Buy, 11 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 24 | New: 32
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Stifel analyst Jonathan Block reiterated a Hold rating and $52.00 price target on DENTSPLY SIRONA (NASDAQ: XRAY).

The analyst comments "Our December downgrade of DENTSPLY SIRONA was centered on future growth concerns, but management supposedly addressed this issue only weeks later in January with the acquisition of Byte, a fast-growing company in the DTC clear aligner market. Our initial take was that the deal made sense - Byte is growing quickly; the acquisition multiple appeared digestible (~6x 2021E sales); and it put DENTSPLY SIRONA’s unlevered balance sheet to work. However, we were always worried about potential channel conflict and these concerns now grow stronger (feedback from 41 General Dentists). Our diligence shows most Dentists do not believe the Byte acquisition will drive additional patients into their offices and we identify potential consumable market share losses due to backlash from the DTC disintermediation associated with the Byte deal. The latter may offset some/all of the future EPS accretion from Byte. The acquisition was bold but channel conflict may arise. Reiterate Hold."

For an analyst ratings summary and ratings history on DENTSPLY SIRONA click here. For more ratings news on DENTSPLY SIRONA click here.

Shares of DENTSPLY SIRONA closed at $55.88 yesterday.



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