Piper sees headwinds for Envista Holdings in overseas markets, cuts PT

Envista Holdings

18/01/2023 12:45

** Piper Sandler cuts PT for dental products manufacturer
Envista Holdings Corp  NVST.N  to $42 from $44; maintains
'overweight' rating 
    ** Cites pressure in China from COVID surge and
implementation of volume-based procurement (VBP) for implants
    ** VBP addresses the underlying demand for medical devices
and uniformly lowers the prices of the drug/devices bought 
    ** VBP has stalled some demand for NVST products and sparked
price cuts that are larger than expected, the brokerage says 
    ** Brokerage says demand from European consumers are better
than expected, but challenges exist specially in markets where
there's a higher self-pay component for dental services, as in
the case of Italy and Spain 
    ** "NVST management has also been clear that Russia (4% of
sales) has been difficult to predict over the past several
months, with 4Q no different and likely down y/y by a wide
margin" - Piper 
    ** 9 of 10 brokerages rate the stock 'buy' or higher and 1
'hold'; median PT is $43 - Refinitiv IBES 
    ** As of last close, stock up ~6% this month
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))