UPDATE: ISI Group Initiates Henry Schein with Underweight, PT of $74.50 on International Business Headwinds

ISI Group initiated its coverage on Henry Schein

with an Underweight rating and a price target of $74.50. ISI Group noted, "Our thesis for HSIC is based on the evolution of the business from a pure distributor to a value-added partner, the continuation of an active M&A strategy to support supplemental growth, and potential headwinds from the company's international business. We also view HSIC's premium valuation relative to the rest of the Healthcare Technology & Distribution group (excluding Health IT) as unwarranted given similar organic growth profiles (particularly when compared to the pharma distribution companies)." Henry Schein closed at $78.55 on Wednesday.