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Piper Sandler cuts DENTSPLY SIRONA shares target amid 1.9% growth decline

EditorEmilio Ghigini
Published 03/05/2024, 14:46

On Friday, investment firm Piper Sandler adjusted its outlook on DENTSPLY SIRONA (NASDAQ:XRAY) shares, a dental equipment maker, by reducing the price target to $32 from the previous $35. The firm maintained a Neutral rating on the stock.

DENTSPLY SIRONA reported its first-quarter earnings for 2024, posting revenue of $953 million, which reflects a 1.9% decrease in organic growth, and an adjusted earnings per share (EPS) of $0.42. These figures fell short of the anticipated revenue of $969 million, but met EPS expectations.

The company's shares saw a 6% decline on the day of the announcement, influenced by the first-quarter performance and the company's revised full-year guidance, which now leans towards the lower end of its organic growth and EPS projections.

The shortfall in top-line revenue is attributed to various factors, primarily macroeconomic, as well as foreign exchange (Fx) issues. Despite these challenges, the current valuation of DENTSPLY SIRONA's stock appears attractive, trading at 13 times next twelve months (NTM) price-to-earnings (P/E) ratio.

The firm's stance remains cautious, emphasizing the need for a clearer understanding of the secular trends in the global dental market and DENTSPLY SIRONA's potential to achieve sustainable organic growth before suggesting the stock as a purchase. Piper Sandler reiterated its Neutral position on the stock, alongside the lowered price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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