Jefferies analyst Brian Tanquilut downgraded the rating on dentalcorp Holdings to a Hold today, setting a price target of C$11.00.
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Brian Tanquilut has given his Hold rating due to a combination of factors surrounding dentalcorp Holdings’ recent developments. The company announced a definitive agreement to be acquired by GTCR for C$11 per share, which represents a 33% premium over the previous closing price. This acquisition aligns with the strategic direction the management had been steering towards, especially after their strategic review in 2023, which hinted at a potential sale once market conditions improved.
Despite the company’s solid performance, including deleveraging, share buybacks, and growth strategy execution, the stock valuation remained stagnant. The decision to take the company private is seen as a prudent move by the board, given the circumstances. The Hold rating reflects the expectation that the acquisition will proceed as planned, with minimal regulatory hurdles, and the price target has been adjusted to C$11 in line with the acquisition offer.
Tanquilut covers the Healthcare sector, focusing on stocks such as Chemed, Community Health, and CVS Health. According to TipRanks, Tanquilut has an average return of 4.9% and a 52.65% success rate on recommended stocks.
In another report released on September 21, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$8.50 price target.