UPDATE: Credit Suisse Downgrades Henry Schein to Neutral

Credit Suisse lowers its rating on Henry Schein (NASDAQ: HSIC) to Neutral from Outperform as shares now command a premium valuation, thus representing a more balanced risk/reward. Price target is raised by $2 to $78.

Credit Suisse notes, "While we remain constructive on the company's operational & financial execution, we acknowledge that the improving environment has not gone unnoticed and expectations for HSIC have risen accordingly. While it is our view that the U.S. is showing some signs of improvement (as discussed in our 1/9/12 Dental Quarterly Preview), we note HSIC's European exposure creates both a modest FX headwind and a potential for slower International segment growth. We would look to again grow more constructive on the company in the event of a pullback or on signs of a sustained return to historical growth levels in key end markets."

HSIC closed at $72.99 a share on Monday.