Pacific Smiles Group (ASX:PSQ) stock rose as much as 10% on Tuesday, extending gains that began on Monday, as the dental health stock rebounds from heavy selling in recent months. Pacific Smiles shares have declined about 50% since the beginning of the year.
New South Wales-headquartered Pacific Smiles operates dental centres. The COVID-19 pandemic adversely affected its business, as lockdowns prevented in-person appointments. However, the future looks more promising with the pandemic’s business impacts subsiding.
Pacific Smiles is opening additional centres to meet growing demand for its services. The company’s FY23 profit guidance suggests a significant amount of potential improvement compared to FY22.
Is Pacific Smiles a takeover target?
According to an Australian Financial Review report, Pacific Smiles could be a takeover target for a number of private equity groups.
The takeover rumours are drawing investors to Pacific Smiles stock, as they seek to buy the dip for a potential premium exit. Pacific Smiles plans to host its AGM on 22 November, at which the management is expected to discuss their vision for the company.
Pacific Smiles share price forecast
According to TipRanks’ analyst rating consensus, Pacific Smiles stock is a Moderate Buy. The average Pacific Smiles share price forecast of AU$1.92 implies over 41% upside potential.
