Piper Sandler downgrades Patterson Companies to Neutral, cuts target to $28

As previously reported, Piper Sandler analyst Jason Bednar downgraded Patterson Companies to Neutral from Overweight with a price target of $28, down from $34. The firm is “throwing in the towel” after hanging with this stock through extended periods of choppy performance. Q3 is “the straw that broke the camel’s back,” given a growing divergence in equipment visibility between Patterson and others, which has been the key factor influencing two straight guidance reductions, and with Piper’s confidence in P&L leverage and forecasting evaporating as Dental margins remain pressured despite higher-margin consumables posting strong. Lastly, the firm argues that even aggressive share buybacks aren’t enough to offset dental equipment-related earnings pressures.