Henry Schein: Hold Rating Amid Challenging Market Conditions and Cost Management Efforts

Leerink Partners analyst Michael Cherny reiterated a Hold rating on Henry Schein (HSIC – Research Report) on May 5 and set a price target of $69.00.

Michael Cherny has given his Hold rating due to a combination of factors affecting Henry Schein’s performance. The company’s recent quarterly results did not significantly deviate from expectations, as revenue growth was not anticipated to be strong. Although there was a slight miss in revenue estimates, operational expense management provided some positive outcomes, thanks to the company’s cost-cutting initiatives.
Despite these efforts, the overall market conditions for dental services remain challenging, with no clear path to significant near-term growth. While Henry Schein is actively working to mitigate cost challenges and tariffs, the uncertainty in the macroeconomic environment has led to a reduction in the price target from $70 to $69. The limited potential for downside is balanced by a similarly limited potential for upside, resulting in a Hold rating as the company navigates these complex conditions.

According to TipRanks, Cherny is a 4-star analyst with an average return of 3.8% and a 54.42% success rate. Cherny covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, CVS Health, and Walgreens Boots Alliance.

In another report released on May 5, Evercore ISI also maintained a Hold rating on the stock with a $68.00 price target.