Dentsply Sirona (XRAY), the leading manufacturer of dental technologies and equipment, reported its 2Q17 earnings on August 9, 2017, with lower-than-expected results. It also made a downward revision to its 2017 guidance. Let’s see what Wall Street is recommending for the company. We’ll also look at analysts’ target prices for the next 12 months.
According to the recommendations of 15 brokerage firms that were part of a Reuters survey, 60.0% (or nine) of them have rated Dentsply Sirona a “buy,” and 33.0% (or five) have rated it a “hold.” Only one analyst gave it a “sell” rating. You can see the analyst ratings for the past few months in the chart below.
According to the same Reuters survey, the consensus 12-month target price for XRAY stock is $65.92. That’s a ~12.4% potential return over its closing price of $58.65 on September 20, 2017.
The highest 12-month target price is $75, representing a maximum 12-month return potential of 27.9%. The lowest target price is $60, which implies the minimum 12-month return potential of 2.3%.
On August 23, 2017, Jefferies lowered its recommendation on XRAY stock from a “buy” to a “hold.” On August 10, 2017, Morgan Stanley maintained its “overweight” rating on the stock and reduced its price target from $69 to $67.
Peers Zimmer Biomet Holdings (ZBH), Danaher (DHR), and Integra LifeSciences (IART) have average broker target prices of ~$56.46, $135.65, and $91.08, respectively. These prices represent returns of 12.2%, 20.6%, and 13.0%, respectively, over the next 12 months.
For industry-focused exposure to Dentsply Sirona, you could consider the SPDR S&P Health Care Equipment ETF (XHE), which accounts for approximately 1.8% of its total holdings in Dentsply Sirona.