News Breaks
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| 21:15 EDT |  | XRAY |
| theflyonthewall.com: | There is no "cap" on Dentsply International's potential, Barron's reports | | Health-care stocks, even ones that are unlikely to be significantly impacted like Dentsply International (XRAY), have been held back by concerns over health-care reform efforts moving through Congress. Ragen Steinke, portfolio manager of the WHG SMidCap Fund says, "This is an area that wasn't being targeted by health-care reform and yet the valuation suggested that it might be." Elliott Schlang, an analyst for Soleil Securities' Great Lakes Review says, "This is one of the finest companies on our list." "It dominates its specialty niche and delivers consistent growth and earnings year after year." Jeff Johnson, an analyst with Robert W. Baird, says that the stock could be trading close to $40 in the next six to 12 months, especially as Dentsply gets 60% of its business from overseas markets.He notes that the weakening dollar also makes Dentsply's products cheaper for clients in developing nations, so 2010 should see strong restocking trends. The company has a history of savvy acquisitions and continues to be well capitalized to take advantage of future opportunities. Dentsply is also able to continue its share-repurchase program, snapping up 700,000 in the last quarter. Also, management's strict cost controls have helped the company maintain margins through the downturn. Trading at 16.5x next fiscal year's earnings, Dentsply is below its historical average of 18x-20x. And though the stock has outperformed its medical-supply peers year-to-date, gaining 13%, the shares are still cheap, as they've lagged behind in the recent rally. Reference Link :theflyonthewall.com |
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