Dentsply upgraded at William Blair after earnings pre-announcement

Pgiam/iStock via Getty Images

• William Blair Upgraded Dentsply Sirona (NASDAQ:XRAY) to Market Perform from Underperform after the dental product maker issued its preliminary 2022 financials on Wednesday, which according to the firm, slightly beat high-end of sales guidance and met the adj. EPS guidance.
• “This was a welcomed preannouncement that shows, in our view, a stabilizing organization after several quarters of declining EPS expectations,” the analyst Brandon Vazquez and the team wrote.
• The analysts cited management comments to argue that the company is looking to reach $3.00 earnings per share by 2025, which suggests it plans for a double-digit EPS CAGR after addressing near-term headwinds and introducing new strategies.
• The team also notes that Dentsply (XRAY) has resolved four issues that led to their previous downgrade, including the leadership uncertainty and overhang from an accounting investigation.
• Issuing a Sell rating on Dentsply (XRAY) in December, Seeking Alpha contributor Mike Zaccardi noted higher risks to the company, but lower prospects for its upside potential.