Allen Lutz, an analyst from Bank of America Securities, maintained the Buy rating on Henry Schein. The associated price target is $83.00.
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Allen Lutz has given his Buy rating due to a combination of factors that highlight Henry Schein’s strategic positioning and growth prospects. The company is experiencing a stable patient traffic in the U.S. and an uptick internationally, particularly in mainland Europe. This international growth is expected to be supported by anticipated rate cuts, which could boost equipment sales and gradually enhance merchandise sales through market expansion.
Henry Schein’s practice design service, which has shown double-digit growth, serves as a leading indicator for new practice builds, indicating future growth potential. Additionally, recent promotions have led to a sales rebound, and the company’s ability to engage customers through long-term purchase commitments is expected to increase wallet share. The influx of experienced representatives amid industry disruption, along with steady share gains in the implant market and strong performance in their core patient management systems, further solidifies the company’s growth trajectory. Moreover, cost-saving initiatives and strategic capital deployment, including a significant buyback authorization, underscore the company’s commitment to enhancing shareholder value.
According to TipRanks, Lutz is a 4-star analyst with an average return of 5.7% and a 60.62% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Teladoc, Doximity, and CVS Health.
In another report released on September 23, Piper Sandler also maintained a Buy rating on the stock with a $77.00 price target.