Stifel maintains Buy on Envista stock with $24 target

On Thursday, Stifel analysts reiterated their positive stance on Envista Holdings Corp . (NYSE:NVST), maintaining a Buy rating and a $24.00 price target. According to InvestingPro data, the stock has declined over 8% in the past week, currently trading at $17.90, suggesting potential upside based on analyst targets ranging from $18 to $26. During Envista’s 2025 Investor Day, the company provided an extensive overview of its various business segments, with significant attention on the Specialty Products & Technologies (SP&T) division, which includes dental implants, precision instruments, and clear aligners.

The analysts noted that while the company’s medium-term financial goal for adjusted EBITDA growth of 4-7% was slightly below Stifel’s previous estimate of 9.0%, now adjusted to 7.5%, they believe that the new management team is taking solid steps to rebuild trust in Envista’s financial forecasts. The new leadership, featuring Paul Keel and Eric Hammes, has not only achieved their 2024 objectives but also established a cautious target for 2025. Additionally, the revenue, EBITDA, and EPS projections for 2026 may end up being conservative.

The guidance for EBITDA suggests an approximate 50 basis points of year-over-year margin expansion. This is less than the roughly 200 basis points of margin expansion that Stifel analysts anticipate Envista could achieve through its Spark franchise over time. Despite all dental companies presenting back-end weighted guidance for 2025, Stifel’s analysis suggests that Envista’s projections are not heavily dependent on market conditions. The firm continues to recommend Envista as one of their top two dental sector picks. InvestingPro analysis indicates the stock is currently undervalued, with analysts expecting profitability this year despite recent challenges. For deeper insights into Envista’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Envista Holdings Corp. has announced a stock repurchase program authorizing the buyback of up to $250 million of its outstanding common stock, set to run through December 31, 2026. This move aims to enhance shareholder value by potentially boosting the stock price through a reduction in the number of shares outstanding. Furthermore, Envista’s recent fourth-quarter financial results exceeded consensus revenue and earnings expectations, although the company’s guidance for 2025 fell short of analyst predictions. Needham analysts have maintained a Hold rating on Envista’s stock, citing a cautious outlook despite the strong finish to the year.

Additionally, Mizuho (NYSE:MFG) Securities has lowered its price target for Envista to $18, maintaining an Underperform rating. This decision follows Envista’s Capital Markets Day, where the company projected EBITDA and EPS growth that fell short of consensus forecasts for 2026 and 2027. Similarly, JPMorgan has adjusted its price target for Envista to $19 while keeping a Neutral rating, noting the company’s new management team’s medium-term targets. Envista’s management has expressed confidence in the long-term growth potential of the dental market, despite acknowledging external challenges such as geopolitical tensions and tariffs.

Needham has reiterated a Hold rating on Envista ahead of its upcoming Capital Markets Day, where the company is expected to outline strategies for long-term value creation. This event is anticipated to provide further insights into Envista’s business segments and financial goals. Investors are keenly awaiting more detailed information on Envista’s growth and margin expectations during this event.

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