Envista initiated with a Hold at Needham

Needham initiated coverage of Envista (NVST) with a Hold rating without a price target. The firm believes the company can reach mid-single digit growth with modest annual margin improvement over time, but says near-term estimates leave little room for upside. Given that the orthodontic channel is Align Technology’s (ALGN) largest category by revenue and Envista is already nearing a mid-teens position this year, Spark growth could start to slow, the analyst tells investors in a research note. The firm says Envista’s N1 implant launch is important to its ability to grow faster than the implant market, but that the different treatment protocol has resulted in a slower pace of adoption.