Henry Schein downgraded to Hold from Buy at Stifel

Stifel downgraded Henry Schein (HSIC) to Hold from Buy with a price target of $75, down from $80. The downgrade is predicated on five main concerns, the analyst says, namely that the firm’s diligence identifies future U.S. share losses for the company’s consumables business; checks suggest the multi-year share shift to online will continue for the foreseeable future; despite these market share concerns, the stock currently trades at a slight premium to its three-year average; the near-term low-hanging fruit may be limited as Henry Schein has already undergone three restructurings in the past five years; and prior industry checks identified risks with the company’s biggest customer. The firm added that more recent conversations would assign a slightly higher probability that at least some portion of the Heartland revenue moves to another provider in the coming quarters.