Cautious Outlook on Henry Schein: Sell Rating Due to Financial Challenges and Premium Valuation

Cautious Outlook on Henry Schein: Sell Rating Due to Financial Challenges and Premium Valuation

Erin Wright, an analyst from Morgan Stanley, maintained the Sell rating on Henry Schein (HSICResearch Report). The associated price target is $55.00.

Erin Wright has given his Sell rating due to a combination of factors affecting Henry Schein’s financial outlook. The company’s recent quarterly earnings were slightly below consensus expectations, with a reported EPS of $1.19 compared to the anticipated $1.20. This shortfall was attributed to weaker profitability, despite some offsetting factors such as interest income and tax benefits.
Additionally, the company’s internal sales growth did not meet market expectations, and the new reporting segments make it challenging to compare current performance with past estimates. The stock is trading at a premium compared to its competitor, which further supports the Sell rating. Furthermore, the 2025 revenue and EBITDA growth targets, although positive, are not substantial enough to drive significant stock movement, leading to a cautious outlook on the stock’s future performance.

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