RBC Capital Cuts dentalcorp Price Target By 10%

dentalcorp Holdings Ltd DNTL price target has been lowered to C$18 from C$20 by RBC Capital analyst Douglas Miehm. The analyst has an Outperform rating on the shares.
Miehm states that 1Q22 revenues and adjusted EBITDA came marginally above RBCe and consensus. dentalcorp reported same practice sales growth (adjusted) of ~2.2-2.7% y/y in 1Q22 when adjusted for the ~5.5-6.0% y/y impact due to patient cancellations and lost provider days as a result of Omicron.
The analyst mentions that dentalcorp acquired adjusted EBITDA (IFRS) of $25 million in Q1 at ~8.8x EBITDA multiple.
Miehm lowered the forecasts as he anticipates the continued impact of COVID-19 on revenue and margins.
Price Action: DNTL shares are trading lower by 2.91% at C$12.33 on TSX on the last check Wednesday.