Mizuho lowers Dentsply Sirona stock price target on margin concerns

Published 14/08/2025, 12:32
Mizuho lowers Dentsply Sirona stock price target on margin concerns

Investing.com - Mizuho has reduced its price target on DENTSPLY SIRONA (NASDAQ:XRAY) to $16.00 from $17.00 while maintaining a Neutral rating on the dental equipment manufacturer. The stock, currently trading at $13.85, appears undervalued according to InvestingPro analysis, with 7 analysts recently revising their earnings estimates upward.

The price target adjustment follows DENTSPLY SIRONA’s second-quarter 2025 results, with Mizuho citing slightly lower margins and higher taxes as factors impacting their outlook. The company maintains a healthy gross profit margin of 51.92% on revenues of $3.67 billion.

Mizuho noted that DENTSPLY SIRONA plans to conduct a deeper examination of strategic initiatives to reaccelerate U.S. sales growth, beginning with efforts to reinvigorate its sales force.

The research firm clarified that recent U.S. weakness for the company is not related to volatility in distributor relationships, with DENTSPLY SIRONA and Patterson still operating under prior agreement terms.

Mizuho trimmed its 2025 earnings per share estimate from $1.90 to $1.85 and reduced its 2026 projection from $2.13 to $2.05, citing greater tariff exposure and higher taxes as contributing factors.

In other recent news, Dentsply Sirona reported its second-quarter earnings for 2025, which slightly exceeded expectations. The company’s earnings per share (EPS) came in at $0.52, surpassing the projected $0.50 and reflecting a 7% increase year-over-year. Revenue was recorded at $936 million, slightly above the forecast of $933.63 million, although it represented a 5% decline from the previous year. Jefferies has adjusted its price target for Dentsply Sirona to $15.00 from $17.00, maintaining a Hold rating on the stock. The firm cited tariff concerns as a factor for the adjustment. Despite a decrease in patient and procedure volumes, the company’s sales and earnings per share were consistent with preliminary results and slightly exceeded prior consensus estimates. These developments reflect the ongoing challenges and adjustments the company is navigating in the current market environment.

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