Analyst Caleb Weng of PAC Partners maintained a Buy rating on SDI Limited (SDI – Research Report), retaining the price target of A$1.30.
Caleb Weng has given his Buy rating due to a combination of factors that highlight SDI Limited’s strong market position and growth potential. The company’s expansion in Europe, the largest dental market globally, is a significant factor, with the increasing momentum of their product Stela providing confidence in replacing declining amalgam sales and capturing market share in the composite market. Additionally, the US market shows promising signs of recovery in elective procedures, which is expected to benefit SDI’s whitening segment.
Moreover, SDI’s financial performance supports the Buy rating, with a gross margin increase reflecting a favorable product mix and NPAT exceeding guidance. The strong adoption of Stela, with its competitive advantage in technology and efficiency, positions it as a leading product in the market. The reduction in costs for the new Montrose facility and the recovery in the Middle East market further bolster the company’s growth outlook. These factors, combined with upcoming opportunities like the IDS Cologne trade show, underscore the positive momentum anticipated for SDI Limited.