Baird warns of falling dental demand as macro headwinds cut into spending

Envista Holdings

03/01/2023 16:09

** Baird Equity Research sees demand uncertainties for
dental stocks to be high entering 2023, hurt by macroeconomic
headwinds
    ** Brokerage says "global dental demand uncertainties
entering 2023 are as high as they've been since the start of
COVID, most notably around dental implants and to a lesser
extent dental equipment in the U.S" 
    ** Analyst Jeff Johnson sees dental spending, pressured by 
falling consumer confidence and rising interest rates, to get
worse before it gets better this year, and the potential for a
2H-23 ortho demand recovery
    ** Baird expects 100-200bp fall-off in pricing tailwinds
across the global dental consumables market and further pressure
on intensive dental treatments in 2023
    ** However, co sees a huge gap in Align Technology  ALGN.O  
and Envista's  NVST.N  current vs long-term value, ranking ALGN
as the most attractive among dental stocks
 (Reporting by Nandhini Srinivasan in Bengaluru)
 ((nandhini.srinivasan@thomsonreuters.com))