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Envista Holdings: Strong Q4 Performance and Strategic Initiatives Drive Buy Rating

Envista Holdings: Strong Q4 Performance and Strategic Initiatives Drive Buy Rating

Allen Lutz, an analyst from Bank of America Securities, reiterated the Buy rating on Envista Holdings (NVSTResearch Report). The associated price target remains the same with $26.00.

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Allen Lutz has given his Buy rating due to a combination of factors including Envista Holdings’ strong performance in the fourth quarter, where growth in consumables, implants, and aligners helped offset challenges in other areas. The company is on a positive trajectory for margin expansion, supported by various growth drivers expected to materialize by FY25. Envista is actively working on improving its implant business, enhancing Spark margins with double-digit growth, and implementing cost management strategies that are projected to provide a significant earnings per share benefit.
Additionally, the company is optimizing its cash flow through a share repurchase program, which is expected to further support earnings growth. The guidance issued by the company is viewed as conservative, and there is a positive outlook on the management’s efforts to stimulate growth and optimize the balance sheet, positioning Envista for potential earnings upgrades. As a result of these factors, Allen Lutz maintains a Buy rating and sets a price objective at $26, reflecting confidence in the company’s strategic initiatives and future performance.

Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Cardinal Health, and DENTSPLY SIRONA. According to TipRanks, Lutz has an average return of 10.8% and a 67.05% success rate on recommended stocks.

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