Stifel Cautious on DENTSPLY SIRONA (XRAY)
- Wall St. opens lower as Netflix slides, virus cases rise
- Netflix (NFLX) Plunges Following Q1 Sub Miss, But One Analyst Sees Chance to Turn Bullish
- Oil prices drop as India's COVID-19 surge dents demand outlook
- Intuitive Surgical (ISRG) Q1 Beat Prompts Two Street Upgrades
- Dollar firm as COVID-19 resurgence dampens risk appetite
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
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."
Shares of DENTSPLY SIRONA closed at $55.88 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Upgrades Citrix Systems (CTXS) to Buy on 3 Catalysts
- Edwards Lifesciences (EW) PT Raised to $110 at Jefferies
- China Pacific Insurance Group Co Ltd. (2601:HK) PT Lowered to HK$29 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments
Related EntitiesStifel, Definitive Agreement
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!