Henry Schein's Transition From Distributor To Manufacturer Spurs Upgrade - This Analyst Sees Easing Headwinds
Portfolio Pulse from Lekha Gupta
Stifel analyst Jonathan D. Block upgraded Henry Schein Inc (HSIC) to Buy from Hold with a $70 price target, citing easing headwinds from market consolidation and online competition. Despite a cybersecurity incident, the analyst sees potential for FY24 EPS to align with FY23 guidance. HSIC's shift from distributor to manufacturer, bolstered by acquisitions, is viewed positively. HSIC will report Q3 FY23 results on November 13, 2023, and shares are up 2.25% at $63.56.
November 10, 2023 | 7:39 pm
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POSITIVE IMPACT
Henry Schein Inc was upgraded to Buy from Hold by Stifel analyst Jonathan D. Block, with a maintained price target of $70, due to diminishing headwinds and a strategic shift towards manufacturing.
The upgrade by Stifel reflects a positive outlook on HSIC's future performance, especially as the company transitions from a distributor to a manufacturer, which could lead to increased market share and revenue. The maintained price target suggests a potential upside from the current trading price. The recent cybersecurity incident is a concern, but the analyst expects a near-term resolution, which could minimize negative impact. The upcoming Q3 FY23 results could provide further insights into the company's performance and influence stock movement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100