Analyst Vik Chopra of Wells Fargo maintained a Hold rating on Henry Schein (HSIC – Research Report), retaining the price target of $80.00.
Vik Chopra’s rating is based on a variety of considerations surrounding Henry Schein’s current market position and future outlook. The company’s valuation is currently aligned with its peers, specifically matching that of Align Technology, yet Henry Schein exhibits lower projected sales and earnings growth through 2026. Additionally, recent performance issues, including nine consecutive quarters of negative growth and a disappointing Q4, contribute to a cautious stance, warranting a Hold rating as the company must demonstrate improved performance.
On the upside, there is potential for improvement in Henry Schein’s earnings per share with the ongoing restructuring program, which could take effect in 2025 and beyond. The involvement of KKR, which has taken a stake and secured two board seats, may also lead to strategic cost cuts and provide further upside potential. However, these positive developments are balanced by concerns over potential distractions from activist involvement, justifying the Hold rating as investors wait for more concrete signs of progress.
Chopra covers the Healthcare sector, focusing on stocks such as Globus Medical, Masimo, and Align Tech. According to TipRanks, Chopra has an average return of 6.6% and a 43.64% success rate on recommended stocks.