Bank of America Securities analyst Allen Lutz has maintained their bullish stance on NVST stock, giving a Buy rating yesterday.
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Allen Lutz has given his Buy rating due to a combination of factors that indicate a positive outlook for Envista Holdings. The company is reinvesting in growth after years of cost-cutting, which had previously affected its commercial performance. This strategic shift is expected to enhance margins and earnings, particularly as Envista benefits from the reversal of the Spark deferral dynamic and restructuring savings.
Furthermore, Envista’s strong brand reputation and commercial investments are anticipated to drive above-market growth in its core segments, such as Ortho and implants. The company is positioned to achieve double-digit EPS growth by FY25, supported by product innovation and market growth potential. Despite a conservative mid-term growth target, there are multiple levers for upside, including cost-saving initiatives and share repurchases. These factors contribute to the confidence in Envista’s ability to meet and potentially exceed its financial targets, justifying the Buy rating.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $24.00 price target.
NVST’s price has also changed slightly for the past six months – from $17.440 to $17.830, which is a 2.24% increase.