Patterson Companies (PDCO) PT Lowered to $26 at Piper Sandler
Piper Sandler analyst Jason Bednar lowered the price target on Patterson Companies (NASDAQ: PDCO) to $26.00 (from $28.00) while maintaining a Neutral rating.
The analyst comments "PDCO reported FQ1 results this morning that included revenue of $1,542M/-2.8% organic and EPS of $0.24 (vs. Street's $1,591M and $0.33), with Dental and Animal Health both posting organic declines and adj OM% falling to a record low. Despite missing Street by nearly a dime, business conditions deteriorating in recent months, and lost earnings tied to the Change Healthcare cybersecurity incident, management reaffirmed EPS guidance of $2.33-$2.43. Other items are offsetting somewhat (share repo, Fx, expense management), but we have greater doubts regarding management hitting even the low end of this range after the multi-quarter stretch of operational challenges (we're modeling $2.30). Shares are reflecting this uncertain outlook today (-14%), but even inexpensive valuation isn't enough to compel dip buying, in our opinion. Instead, and considering the past year of struggles, we believe PDCO needs to show multiple quarters of improved performance before even value investors can safely participate."