Analysts Give 3 Medtech Stocks A Health Screening

Baird analyst Jeff Johnson took a look at three dental stocks. Overall, Johnson stated that Q3 dental demand remained soft, leading to a possible lowered share price following the Q3 reports.

As a result of Q3 demand concerns and the high valuation of Align Technology Inc ALGN, Johnson lowered his rating on the stock from Outperform to Neutral and maintained a target price of $96.

Johnson maintained an Outperform ratings for Dentsply Sirona Inc XRAY and Henry Schein Inc HSIC based on near-term pressures leading to possible catalysts.

"While we see similar risk of soft overall dental results for each in Q3, shares of both have already corrected about 10% in recent months and we see tangible near-term catalysts for each in late 2016 (Section 179), early 2017 (IDS), and late 2017 (possible NA distribution agreement for Sirona products)," said the analyst.

Johnson increased the firm's target price for Henry Schein from $175 to $176, lowered their target price for Dentsply Sirona from $69 to $67, and noted that post-quarter weakness could be a potential opportunity for buyers of the two stocks.