Patterson Companies initiated with a Neutral at Mizuho

Mizuho initiated coverage of Patterson Companies (PDCO) with a Neutral rating and $23 price target. The stock valuation is currently below its historical averages, but the company’s current FY25 EPS guidance may be too challenging to achieve, leading to potential downward revisions to the current outlook and Street estimates, the analyst tells investors in a research note. Patterson is facing company-specific risk related to the potential non-renewal of its long-term distribution contract with Dentsply Sirona (XRAY) or risk of renewal at less favorable financial terms, while the firm’s dental survey also suggests minimal improvement in the challenging U.S. dental sector outlook for 2025 vs. 2024, Mizuho adds.