Henry Schein (HSIC – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Lutz from Bank of America Securities reiterated a Buy rating on the stock and has a $90.00 price target.
Allen Lutz has given his Buy rating due to a combination of factors including Henry Schein’s strategic focus on higher-growth and higher-margin assets, which is expected to enhance profitability over time. Despite recent challenges, such as macroeconomic headwinds and cybersecurity disruptions, the company is restructuring its segments and making strategic shareholder changes to better position itself for future growth.
Additionally, Lutz sees potential for low double-digit earnings growth beyond 2025, driven by favorable mix dynamics, cost optimization, and an improving market environment. Although there is a slight reduction in revenue and EPS estimates for FY25, the focus on specialty products and technology growth, along with cost savings, is anticipated to support incremental share gains and profitability improvements, justifying the Buy rating with a price objective of $90.
Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Teladoc, and Cardinal Health. According to TipRanks, Lutz has an average return of 10.5% and a 67.93% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $80.00 price target.