Dentsply Sirona's (XRAY) new Chief Executive Dan Scavilla is acting with urgency to mend channel relationships and the company may also be seeing the start of an inflection point in the dental market, BofA Securities said in a note Thursday.
Dentsply's results next week may "cause volatility" as the company's management may decide to cut the dividend, pledge high investments, and release an outlook below consensus estimates, the note said.
However, BofA said it would see this as a "potential attractive opportunity, as these decisions combined with new management's progress in repairing distributor relationships could support line of sight into growth stabilizing over the medium term."
The note said Dentsply's risk/reward "finally skews positive" even if the company's management cuts its dividend and EPS outlook comes in below consensus estimates.
BofA upgraded Dentsply to buy from neutral and lifted the company's price target to $17 from $13.
Price: 12.72, Change: +0.23, Percent Change: +1.80
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