Barrington Research Reassumes Coverage DENTSPLY On Limited Upside

Loading...
Loading...

Barrington Research reassumed coverage of DENTSPLY International Inc. XRAY, after an analyst transition. Michael Petusky and Tareq Affouri are now responsible for coverage and they issued a Market Perform rating. The firm had last rated it at Outperform (May 2014).

Although DENTSPLY is a leader in the professional dental consumables category, operating in more than 120 countries and generating roughly $3 billion in annual revenue, Petusky and Affouri think that “shares are currently trading within 10% of fair value,” after having gained about 14 percent over the past three months.

According to the report, the firm models $2.88 billion in revenue (excluding precious metal content) for 2015, and $2.93 billion for 2016.

Analysts expect gross margin expansion of 50 percent, and an 80 basis point reduction in SG&A expense (as a percentage of revenue), between 2014 and 2016.

“Key factors include the likely rationalization of manufacturing facilities, the probable discontinuation of certain lower margin products, and a cost-saving reorganization of certain facets of the company’s German lab business.”

Regarding earnings, Barrington is modeling adjusted EPS of $2.66 in 2015, and $2.84 in 2016, while anticipating a 140 basis point improvement in adjusted EBITDA margin between 2014 and 2016.

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorInitiationAnalyst RatingsBarringtonBarrington ResearchMichael PetuskyTareq Affouri
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...