Brian Tanquilut, an analyst from Jefferies, reiterated the Buy rating on dentalcorp Holdings (DNTL – Research Report). The associated price target is C$11.50.
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Brian Tanquilut has given his Buy rating due to a combination of factors that highlight dentalcorp Holdings’ promising growth prospects and financial health. The company’s management has shown confidence in achieving consistent same-store revenue growth of 3-5% and annual margin expansion of 25-35 basis points, driven by operating leverage. This growth trajectory is supported by a strategic plan to double the business over the next five years, leveraging existing infrastructure and maintaining corporate costs in line with inflation.
Additionally, dentalcorp’s strong free cash flow generation allows for self-funding of mergers and acquisitions, as well as debt reduction, which enhances the company’s financial stability. The management’s focus on expanding into the U.S. market presents an incremental opportunity for growth, without detracting from its Canadian strategy. This disciplined approach, combined with a proven business model and operational discipline, positions dentalcorp well for future expansion and underpins the Buy rating.
DNTL’s price has also changed slightly for the past six months – from C$8.900 to C$8.540, which is a -4.04% drop .