dentalcorp Holdings, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Stephen Macleod from BMO Capital downgraded the rating on the stock to a Hold and gave it a C$11.00 price target.
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Stephen Macleod has given his Hold rating due to a combination of factors surrounding dentalcorp Holdings. The proposed acquisition by GTCR at $11 per share is seen as a positive outcome for shareholders, offering a fair valuation that aligns with market expectations. Although the offer is slightly below the previous target price of $12, the valuation is reasonable when compared to industry peers.
Despite dentalcorp’s consistent momentum in SPRG and margin expansion, these improvements were not reflected in the stock price, prompting a revision of the target to match the acquisition offer. The transaction, which has the unanimous support of the Board of Directors, provides certainty of value and liquidity for shareholders. Given the strategic review conducted by dentalcorp, the likelihood of competing bids is considered low, further justifying the Hold rating.
Macleod covers the Consumer Cyclical sector, focusing on stocks such as Leon’s Furniture, Aritzia, and Gildan Activewear. According to TipRanks, Macleod has an average return of 17.0% and a 65.07% success rate on recommended stocks.
In another report released on September 26, Jefferies also downgraded the stock to a Hold with a C$11.00 price target.