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What Do Analysts Recommend for Dentsply Sirona?

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Analysts’ recommendations

Dentsply Sirona (XRAY) released its 2Q17 results on August 9, 2017. Let’s take a look at the recommendations and target prices provided by Wall Street analysts for the dental consumables and equipment leader over the next year.

In a recent Reuters survey, based on the recommendations of 16 brokerage companies, around 63% (or ten) of the analysts provided a “buy” recommendation for Dentsply Sirona. Around 31% (or five) of the firms gave the company a “hold” rating. Only one of the analysts recommended a “sell” on XRAY stock.

The chart above shows the recommendation summary for Dentsply Sirona over the next year. The consensus 12-month target price for XRAY stock is $67.10, which amounts to an ~21.2% potential return over its price of $55.30 on August 11, 2017.

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Target prices

Based on analysts’ recommendations, Dentsply Sirona’s highest 12-month target price is $76.00, representing a maximum one-year return potential of 37.4%. The lowest 12-month target price is $49.00, which represents the lowest one-year return potential of -11.4%.

In July 2017, Jefferies maintained its “buy” target on XRAY stock while raising its price target to $72.00. Credit Suisse raised the price target on XRAY stock to $75.00. In May 2017, Goldman Sachs downgraded Dentsply Sirona’s rating from “neutral” to “sell” and decreased its price target on the stock to $55.00.

Peers Integra LifeSciences (IART), Zimmer Biomet Holdings (ZBH), and Danaher Corporation (DHR) have average broker target prices of ~$56.46, $135.65, and $91.08, respectively. These figures imply returns of 12.2%, 20.6%, and 13%, respectively, over the next 12 months.

Investors interested in gaining industry-focused exposure to Dentsply Sirona can consider the SPDR S&P Health Care Equipment ETF (XHE). Dentsply Sirona comprises ~1.5% of XHE’s portfolio.

In the final part of this series, let’s look at the recent stock price performance of Dentsply Sirona.

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