Analyst Michael Cherny of Leerink Partners reiterated a Hold rating on Envista Holdings (NVST – Research Report), reducing the price target to $21.00.
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Michael Cherny has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Envista Holdings’ future performance. The company’s recent Investor Day highlighted its potential for growth acceleration, yet it also revealed that the new management team has significant challenges to overcome. While there are promising opportunities in the higher-margin implants market and a potential turnaround with the Spark product, these remain contingent on successful execution by the revamped management team.
Envista’s medium-term targets for core growth, EBITDA, and EPS appear reasonable within the current dental market context, which is still recovering from the impacts of Covid-19. The company is expected to benefit from improvements in organic revenue growth and margin expansion, alongside its strategic positioning to capitalize on market adjacencies. However, the analyst remains cautious, awaiting further evidence of macro and micro growth drivers before adopting a more positive stance. Consequently, the price target has been adjusted from $23 to $21, reflecting a more moderate growth outlook and increased investment needs.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $19.00 price target.
NVST’s price has also changed slightly for the past six months – from $17.440 to $17.830, which is a 2.24% increase.