Leerink upgrades Envista as stabilization signs start to emerge

As previously reported, Leerink upgraded Envista (NVST) to Market Perform from Underperform with a price target of $23, up from $16. The firm says its biggest concern has been that Envista still needs to invest in growth in order to reboot its product portfolio, which would lead to an elongated period of slower EBITDA rebound. But the early steps taken, on more moderate investments than Leerink had anticipated so far, drive its out-year estimates higher and lead to the firm’s upgrade. Leerink still thinks, in a tough dental market, the stock is currently pricing in a fairly significant rebound that may not come to fruition too quickly.