Henry Schein, Envista cut at Baird after dental survey suggests drop in patient volume
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Baird cut its rating on Henry Schein (NASDAQ:HSIC) and Envista (NVST) but maintained an Outperform rating on Align Technology (NASDAQ:ALGN) after the firm's dental survey pointed to slowing patient volumes.
Baird analyst Jeff Johnson downgraded Henry Schein to Neutral from Outperform with a price target of $88, from $103. While, Envista (NVST) was cut to Neutral from Outperform with a price target of $46 from $54.
Henry Schein has Hold rating on the SA Quant Rating scale, which factors in measures such as profitability and growth, among other things. The Wall Street Analysts' Rating for HSIC is also Hold, in sync with the Quant rating.
Meanwhile, Envista has a SA Quant rating of Buy, and a Wall St. Analysts' Rating of Strong Buy.
Johnson said that the firm's June dental survey suggests moderate slowing for patient volumes and diminishing spending expectations for dental devices. The analyst is also worried that voluntary spending on dental could decrease more than in past cycles, in a consistently high inflationary scenario.
The analyst has a Neutral ratings on 'nearly all' dental stocks, but Johnson maintained an Outperform rating on Align (ALGN) due to its valuation and his expectations for a speedy recovery in ortho than in general dental demand.
Align, however, has an SA Quant rating of Strong Sell, with a factor grade of B- in Growth and C- in Momentum.
This is in contrast with Wall Street Analysts' Rating of Buy, with 8 out of 14 analysts giving it a Strong Buy.