Henry Schein Positioned for Growth: Buy Rating Reaffirmed Amid Strategic Expansion and Board Expertise

Henry Schein (HSIC – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Lutz from Bank of America Securities reiterated a Buy rating on the stock and has a $85.00 price target.

Allen Lutz has given his Buy rating due to a combination of factors that indicate Henry Schein is well-positioned for future growth. Despite facing macroeconomic challenges, the company has shown resilience by managing its operating expenses effectively, which has helped offset the impact of slower sales growth. Notably, Henry Schein’s higher-margin and higher-growth segments are expanding more rapidly than other parts of the business, with the Specialty and Value-Added Services expected to constitute over 50% of operating income by 2027. This strategic focus provides confidence in the company’s ability to enhance gross profit growth.
Furthermore, the recent addition of KKR to the board brings valuable expertise in the dental sector, which is anticipated to create opportunities for accelerating revenue growth and optimizing costs. These developments are expected to drive organic EPS growth, and any improvement in market conditions could further enhance operating leverage. Consequently, Allen Lutz reiterates a Buy rating with a price objective of $85, reflecting a positive outlook for Henry Schein’s financial performance.

In another report released on April 30, Piper Sandler also maintained a Buy rating on the stock with a $77.00 price target.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HSIC in relation to earlier this year.