UPDATE: Piper Jaffray Initiates Henry Schein with Neutral, $81 PT in Valuation, FX Headwinds

Piper Jaffray initiates its coverage on Henry Schein HSIC with a Neutral rating and a price target of $81. Piper Jaffray notes, "HSIC is a leading distributor of dental, veterinarian, and medical office supplies. We believe HSIC is fairly valued, and given the company's international exposure and meaningful concentration to Europe (28% of revenues), FX headwinds could lead to lower than expected Q2 revenues. Additionally, IDEXX will move one of its three exclusive vet distributors to non-exclusive status in 2013, which would lower gross margins from 15% to 5% and potentially lead to lower revenues. Until these issues are resolved, we believe HSIC could be range-bound. Our $81 PT is based on 17x our FY13E EPS." HSIC closed at $77.25 on Thursday.