Envista downgraded to Market Perform after earnings miss at William Blair

William Blair downgraded Envista to Market Perform from Outperform following the Q4 earnings miss. The firm says it underestimated the mix headwinds in the quarter and what they would mean for 2024 estimates. Even more surprising was 2024 EBITDA margin guidance for a range of 16% to 17%, which was below the Street at 18.6% and signaled the second year in a row of margin contraction, the analyst tells investors in a research note. Blair believes Envista is going through a series of macro, geopolitical, and mix issues that will weigh on the profits through at least 2024, which will limit stock upside for the next 12 months.