2017-02-21 11:21:07 | Battleground: Analysts clash on Dentsply Sirona after earningsTwo research firms disagreed on the outlook for Dentsply Sirona (XRAY) in the wake of the company's earnings report at the end of last week, with Piper Jaffray raising its price target on the shares and Barrington downgrading the stock. Piper believes that the company is taking market share, while Barrington is disappointed by its 2017 guidance. BULLISH TAKE: Excluding the negative impact of a reduction in channel inventory last quarter, Dentsply's "total internal growth" came in above Piper Jaffray's forecast of 3.5%, wrote Matt O'Brien, an analyst at the firm. Additionally, the company said that it has gained market share recently and expects that trend to continue this year, the analyst stated. These positive metrics come despite worries by some about the health and stability of "the broader dental market," O'Brien stated. He thinks that the company's 2017 guidance for internal growth of 2.5%-4.5% is "achievable," given increases in end market demand. O'Brien raised his price target on the stock to $73 from $70 and reiterated an Overweight rating on the name. BEARISH TAKE: Dentsply's 2017 guidance was "frustrating," as it projects "very modest and lower earnings growth" this year, wrote Barrington analyst Michael Petusky. Additionally, the growth is expected to be concentrated towards the end of the year, according to Petusky. Given the reduced EPS outlook for the company through 2019, Dentsply's stock will have a ceiling, at least for "a couple of quarters," wrote Petusky, who downgraded the stock to Market Perform from Outperform. PRICE ACTION: In morning trading, Dentsply was down fractionally at $62.59. | |
---|