Mizuho raises Envista Holdings stock price target to $19 on market share gains

Investing.com - Mizuho has raised its price target on Envista Holdings Corp. (NYSE:NVST) to $19.00 from $18.00 while maintaining an Underperform rating. The stock currently trades at $20.35, with InvestingPro data showing Envista is trading at a remarkably high P/E ratio of 236.6, significantly above industry averages.

The dental equipment manufacturer reported third-quarter revenues of $670 million, representing an 11.5% year-over-year increase. The company achieved approximately 5% adjusted "core growth" in the quarter, or about 9% core growth when including Spark deferral. This performance contributes to Envista’s trailing twelve-month revenue of $2.62 billion, with a solid gross profit margin of 56.05%.

Envista’s Spark clear aligners recorded double-digit reported sales growth, benefiting from year-over-year comparisons against 2024 deferral adjustments. Dental implants posted positive growth for the fourth consecutive quarter, while dental consumables also experienced double-digit growth. InvestingPro analysis reveals Envista has achieved a perfect Piotroski Score of 9, indicating strong financial health despite its current valuation challenges.

Following these results, Envista management raised its 2025 earnings per share guidance from $1.05-$1.15 to $1.10-$1.15. The company also increased its core sales growth forecast to approximately 4% from 3-4%, while maintaining its EBITDA margin guidance of approximately 14%. Analysts tracked by InvestingPro forecast EPS of $1.13 for fiscal 2025, aligning with management’s updated guidance.

Mizuho cited Envista’s modest market share gains from what it believes is a better-positioned product portfolio compared to broad dental peers as the basis for raising its 2025 EPS estimate from $1.07 to $1.15 and its 2026 estimate from $1.20 to $1.26. According to InvestingPro data, Envista maintains a strong free cash flow yield of 8% and operates with a moderate level of debt, with current ratio of 2.37 indicating solid short-term liquidity. Discover comprehensive analysis and 10+ additional ProTips in Envista’s Pro Research Report, available with an InvestingPro subscription.

In other recent news, Envista Holdings Corp reported its third-quarter 2025 earnings, showcasing a stronger-than-expected financial performance. The company’s earnings per share reached $0.32, surpassing the forecast of $0.28, resulting in a 14.29% surprise. Revenue also exceeded expectations, totaling $670 million compared to the anticipated $641.1 million. These results have set a new baseline for future performance, according to management’s presentation during the earnings call. Additionally, Evercore ISI reiterated an Outperform rating for Envista, maintaining a $25.00 price target. The research firm highlighted the company’s clarification on revenue deferral impacts and their influence on future growth and margins. These recent developments reflect positively on Envista’s financial health and strategic direction.

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