Mizuho has revised its price target for Dentsply Sirona (XRAY, Financial), reducing it from $18 to $16 per share, while maintaining a Neutral stance on the stock. This adjustment reflects a cautious outlook for the dental industry as a whole, with expectations for weaker growth in the first quarter.
The decision to lower the price target comes after the latest American Dental Association survey for Q1, which suggests that the growth trajectory for companies in the dental sector might not be as robust as previously expected. This has led Mizuho to reassess and decrease its estimates for a broad range of dental manufacturers.
Investors are advised by the analyst to consider these revised expectations as the sector appears poised for a more subdued performance in the coming months. As such, the Neutral rating on Dentsply Sirona highlights a balanced perspective on both potential risks and opportunities within the dental market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Dentsply Sirona Inc (XRAY, Financial) is $18.67 with a high estimate of $27.00 and a low estimate of $14.00. The average target implies an upside of 40.56% from the current price of $13.28. More detailed estimate data can be found on the Dentsply Sirona Inc (XRAY) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Dentsply Sirona Inc's (XRAY, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Dentsply Sirona Inc (XRAY, Financial) in one year is $32.24, suggesting a upside of 142.77% from the current price of $13.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Dentsply Sirona Inc (XRAY) Summary page.
XRAY Key Business Developments
Release Date: February 27, 2025
- Revenue: $905 million in Q4, representing a reported sales decline of 10.6% and organic sales decline of 10.7%.
- EBITDA Margin: Declined 290 basis points in Q4, mainly due to a lower gross margin.
- Adjusted EPS: $0.26 in Q4, down 41.3% from the prior year.
- Operating Cash Flow: $87 million in Q4, down 45.6% year over year.
- Full Year Revenue: $3.79 billion, a reported sales decline of 4.3% and organic sales decline of 3.5%.
- Full Year EBITDA Margin: Contracted 80 basis points to 16.6%.
- Full Year Adjusted EPS: $1.67.
- Free Cash Flow Conversion: 83% for the year, a year-over-year increase of over 40%.
- Net Debt-to-EBITDA Ratio: Approximately 3x at year-end.
- 2025 Outlook - Organic Sales: Expected to be down 2% to 4%, including a negative 2% Byte sales impact.
- 2025 Outlook - Adjusted EPS: Expected to be in the range of $1.80 to $2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dentsply Sirona Inc (XRAY, Financial) saw a return to organic sales growth in Europe, with approximately 2% growth in Q4 2024.
- Global growth in Imaging was nearly 13%, indicating strong performance in this segment.
- SureSmile continued to grow globally, achieving a nearly 4% increase over the prior year quarter, with over 20% growth in Europe for Q4 and the full year.
- Wellspect exceeded estimated market growth rates, posting approximately 7% growth.
- The company completed the largest individual phase of its ERP deployment in the US, which went live on November 1, 2024, laying important foundations for future phases.
Negative Points
- Dentsply Sirona Inc (XRAY) recorded non-cash charges for the impairment of goodwill and other intangibles of approximately $370 million net of tax.
- The voluntary suspension of sales and marketing of Byte aligners resulted in a charge for customer refunds, negatively impacting Q4 results.
- Organic sales in the Orthodontic & Implant Solutions segment declined 28.7%, primarily driven by the impact from Byte.
- US sales declined 29.9%, largely due to Byte, CAD/CAM, and the timing of EDS distributor orders.
- The macro environment, challenging marketing, and competitive dynamics have created headwinds on organic sales, making the $3 adjusted EPS target unachievable in 2026.
