Dentsply Sirona downgraded at Leerink after guidance cut
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With its Q3 2024 financials on Thursday, Dentsply Sirona (NASDAQ:XRAY) met Street forecasts but slashed its full-year outlook, prompting Leerink Partners to downgrade the dental care company to Market Perform from Outperform.
Dentsply (NASDAQ:XRAY) lowered its 2024 organic sales growth outlook to (3.5%) to (2.5%) from (1%) to flat previously and updated its outlook for adj. earnings per share to $1.82-$1.86 from $1.96-$2.02, which fell short of $1.98 in the consensus.
The Charlotte, North Carolina-based company cited ongoing U.S. market pressures and its decision to suspend sales of its Byte Aligners as reasons for the revised growth outlook.
"With ongoing growth challenges, the Byte suspension (we have removed Byte from our model for now), and what remains a choppy market, we find it hard to remain constructive until we see better data points," Leerink wrote.
The brokerage trimmed its price target on XRAY to $21 from $32 per share after revising the stock's 2025 EV/EBITDA multiple to ~8.5x from ~10x, citing uncertainty over the company's revenue growth and other factors.
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