Henry Schein initiated with a Market Perform at Leerink

Leerink initiated coverage of Henry Schein with a Market Perform rating and $78 price target. The firm sees a strong pathway for Henry Schein, once past the short-term financial disruption from the company’s cybersecurity incident, to build back towards its long-term growth algorithm, the analyst tells investors in a research note. There is likely to be a balance between the achievement of the long-term revenue growth, driven in large part by specialty expansion, and the pace of margin expansion, now expected to be 10bps annually on the back of growth reinvestments, the firm adds.