Piper Sandler Lowers Envista Holdings’ Rating to Neutral

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Envista Holdings ($NYSE:NVST) Corporation (NYSE: NVST) is a global medical technology company offering solutions and services for dental and orthodontic care. It is headquartered in San Jose, California and provides services and products to more than one million customers worldwide. Recently, Piper Sandler has downgraded Envista’s rating from Overweight to Neutral. This means that the stock is expected to perform inline with the market, rather than outperform it. The downgrade reflects the company’s current financial position and the inherent risks associated with its operations. The downgrade is based on the belief that Envista’s current financial position does not support a higher rating, given the weak market conditions and the competitive landscape. Furthermore, a shift in customer preferences towards digital alternatives could put pressure on sales and profits in the near future. It is also important to note that Envista’s product portfolio is heavily reliant on a few key customers, which could pose a risk to future growth. In light of the downgrade, Envista’s stock price may come under pressure in the short term. Investors should be aware of the potential risks when considering whether to invest in the company’s stock or not.

In addition, it is important to keep a close eye on the company’s financials and operational performance to assess if there is value in buying or holding the stock.

Share Price

This change resulted in a 3.5% decrease in the stock price, with Envista Holdings opening at $22.2 and closing at $21.3. This further resulted in the stock being lower than its last closing price of $22.1. The Piper Sandler team stated that the reduced rating was given due to the lower than expected demand for Envista Holdings’ products and services. The team also noted that though the company’s financials remain strong, the revenue outlook has been affected by the current market conditions.

The analysts suggested that shareholders should remain cautious and monitor Envista Holdings’ performance over the upcoming quarters before making any major investments. They also mentioned that any further changes to their rating will be contingent on any indications of improvement in the demand for the company’s products and services. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Envista Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Envista Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Envista Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Envista Holdings are shown below. More…

Analysis

GoodWhale has concluded that ENVISTA HOLDINGS is in good health based on our analysis of its cashflows and debt. The Star Chart reflects a high health score of 8/10, suggesting the company is well equipped to sustain future operations in times of crisis. That said, we classify ENVISTA HOLDINGS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Our analysis also found that ENVISTA HOLDINGS is strong in assets, medium in profitability and weak in dividends and growth. Given its characteristics, value investors may be interested in ENVISTA HOLDINGS. This type of investor seeks out undervalued companies that are trading below their intrinsic value. ENVISTA HOLDINGS fits this profile, as it has a healthy balance sheet and is trading at a reasonable price relative to its growth prospects. As such, these investors may be drawn to the company’s potential for downside protection and long-term capital appreciation. More…

Peers

Its main competitors are Medikit Co Ltd, Nihon Kohden Corp, and Fukuda Denshi Co Ltd. Envista has a strong market presence in the US, Europe, and Asia Pacific.

– Medikit Co Ltd ($TSE:7749)

As of 2022, Medikit Co Ltd has a market cap of 41.17B and a Return on Equity of 6.14%. The company produces and sells medical equipment and supplies. It offers a wide range of products, including medical devices, pharmaceuticals, and over-the-counter drugs. Medikit also provides services, such as medical examinations and consultations.

– Nihon Kohden Corp ($TSE:6849)

Nihon Kohden is a Japanese manufacturer of medical equipment, with a particular focus on patient monitoring systems. The company has a market cap of 278.79B as of 2022 and a return on equity of 13.19%. Nihon Kohden has a long history, dating back to 1951, and has been a leading player in the medical equipment industry for many years. The company’s products are used in hospitals and clinics around the world, and it has a strong reputation for quality and reliability.

– Fukuda Denshi Co Ltd ($TSE:6960)

Fukuda Denshi Co Ltd is a Japanese company that manufactures and sells medical equipment. The company has a market cap of 138.83B as of 2022 and a Return on Equity of 9.95%. Fukuda Denshi is a leading manufacturer of medical equipment and supplies, and its products are used in hospitals and clinics around the world. The company’s products include medical imaging devices, patient monitors, and medical electronics.

Summary

Envista Holdings (NVST) has been on a roller coaster ride in the stock market lately. This has left investors wondering what potential impacts this could have on the company’s performance going forward. It is important to analyze the stock’s fundamentals before investing in NVST, such as its historical financials, dividend growth rate, outlook on future earnings and relevant industry trends.

Investors should also consider the company’s competitive advantages and risks associated with its business model before making any investment decisions. Analyzing the current market sentiment towards NVST can also be beneficial in order to determine if the current market price is factoring in all relevant information.