DENTSPLY SIRONA: Hold Rating Amid Stabilizing Growth and Macro Challenges

Bank of America Securities analyst Allen Lutz reiterated a Hold rating on DENTSPLY SIRONA (XRAY – Research Report) yesterday and set a price target of $17.00.

Allen Lutz has given his Hold rating due to a combination of factors impacting DENTSPLY SIRONA’s current and future performance. The company’s organic growth in key segments is showing signs of stabilization, and cost efficiencies are contributing to greater operating leverage than initially expected. However, there remains uncertainty regarding the extent to which recent performance was influenced by a potential pull-forward of purchases or a release in pent-up demand, particularly in Germany.
While the company’s commercial initiatives, such as tele-salesforce and the reintroduction of lower-priced products, are supporting execution, the macroeconomic environment remains a concern. The FY25 guidance appears manageable with expectations of improved organic growth, but macro uncertainties and tariff impacts pose challenges. Despite these factors, leaner operations and a favorable foreign exchange environment are positives, leading Allen Lutz to maintain a Neutral rating and slightly raise the price objective to $17.