DENTSPLY SIRONA: Strong Earnings Overshadowed by Leadership Changes and Market Uncertainties

Morgan Stanley analyst Erin Wright has maintained their neutral stance on XRAY stock, giving a Hold rating yesterday.

Erin Wright’s rating is based on a combination of factors that reflect both positive and concerning elements in DENTSPLY SIRONA’s recent performance. The company reported a first-quarter earnings per share that exceeded expectations, driven by higher revenues and profitability. However, this positive outcome is overshadowed by the abrupt and unexpected departure of the Interim CFO, which raises questions about the reliability of the company’s future guidance.
Despite maintaining its full-year 2025 earnings guidance and increasing its adjusted EBITDA margin target, there are uncertainties surrounding the company’s exposure to tariffs and foreign exchange impacts. Additionally, while some business segments showed strong performance, others, like the Orthodontic and Implant Solutions, experienced significant declines. These mixed results, combined with the leadership change, lead Erin Wright to adopt a cautious stance, resulting in a Hold rating for the stock.

In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $17.00 price target.