Analyst Michael Cherny from Leerink Partners reiterated a Hold rating on Envista Holdings and increased the price target to $22.00 from $21.50.
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Michael Cherny has given his Hold rating due to a combination of factors influencing Envista Holdings. The company’s second-quarter performance showed solid revenue growth, surpassing expectations, partly due to favorable comparisons and customer pre-purchases in anticipation of tariff increases. Both major segments, SP&T and E&C, exhibited strong growth, contributing to an overall core growth rate that exceeded previous guidance. However, despite these positive aspects, there are concerns about the company’s margin performance, which fell short of expectations due to the impact of tariffs and foreign exchange rates.
The macroeconomic environment for the dental market remains soft, with limited consumer spending on discretionary dental services, which tempers expectations for significant near-term improvement. While the company has raised its guidance for core growth, the need for ongoing investments is expected to constrain margin expansion. As a result, Cherny maintains a cautious outlook, awaiting further progress in achieving long-term growth acceleration and improved profitability before considering a more favorable rating.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $22.50 price target.