Morgan Stanley downgraded Dentsply Sirona Inc. on Tuesday, reducing its value goal from US$21 to US$14 and shifting the inventory from “obese” to “equal weight” because the dental sector faces rising pressures and investor warning.
The downgrade comes amid a 21 per cent decline in Dentsply shares up to now this 12 months, underperforming each its health-care friends and the broader S&P 500 index.
The funding financial institution cited broader coverage headwinds and utilization developments throughout health-care providers — together with dental — as key issues heading into the primary quarter.
In the meantime, Align Expertise additionally noticed its goal value decreased, with Morgan Stanley reducing expectations from US$272 to US$249. Nonetheless, the agency maintained its “obese” ranking on the corporate, which is greatest recognized for its Invisalign system.
Banks take reverse positions on Henry Schein
In the identical vein, contrasting sentiment was seen earlier this 12 months amongst Canadian banks on Henry Schein Inc., a significant U.S.-based distributor of dental provides and gear.
Nationwide Financial institution of Canada greater than doubled its stake in Henry Schein within the fourth quarter of 2024, rising its holdings by 102.4 per cent to roughly US$75 million, in line with its newest submitting with the U.S. Securities and Trade Fee (SEC). The financial institution now owns just below 0.9 per cent of the corporate’s inventory.
Different institutional traders additionally expanded their positions. Franklin Assets Inc. elevated its holdings by 137 per cent, and AllianceBernstein added greater than 31,000 shares to its portfolio within the quarter.
Against this, Financial institution of Montreal slashed its Henry Schein holdings by practically 80 per cent throughout the identical interval. BMO decreased its place to about 145,690 shares value US$10.1 million, down from greater than 700,000 shares within the earlier quarter.
The cut up comes because the dental sector adjusts to shifting dynamics in affected person demand, rising prices, and uncertainty round public coverage — together with insurance coverage protection and well being reform initiatives in each the U.S. and Canada.
