XRAY: Management Shifts And Revised Earnings Guidance Will Drive Long-Term Share Price Recovery

Analysts have lowered their price target for DENTSPLY SIRONA from approximately $16 to around $13. They cite weaker-than-expected earnings, reduced profit margins, and challenges with company guidance as the key factors influencing their decision.

Analyst Commentary

Recent analyst updates reflect a mixed outlook for DENTSPLY SIRONA, with lowered price targets and revised recommendations drawing attention to both ongoing strengths and several challenges facing the company. The following summarizes the key takeaways from Street research:

• Some analysts maintain a Buy rating and highlight a modest reduction in price targets but express confidence in the company’s long-term value proposition.
• Growth actions under new leadership are viewed as foundational for future improvement, with expectations for notable progress by the second half of 2026.
• Recent quarterly revenues slightly exceeded market expectations, which suggests underlying demand resilience in certain segments.
• The company’s ongoing strategic initiatives, if executed successfully, are still seen as offering potential upside over the long term.

• Most analysts have cut their price targets, which reflects widespread caution regarding near-term valuation and execution risks.
• Weaker-than-anticipated earnings, missed EPS, and reduced EBITDA in the latest quarter have raised concerns about the pace of recovery.
• Guidance reductions have signaled deeper-than-expected challenges, especially within the U.S. market, along with ongoing operational headwinds such as lower volumes, unfavorable mix, and tariffs.
• High management turnover, including another CFO transition, is cited as adding to uncertainty and suggesting that the company’s turnaround will require a longer and more complex effort than initially anticipated.

What's in the News

• DENTSPLY SIRONA announced that CFO Matthew E. Garth will depart the company effective November 5, 2025. A search process is underway for his successor. (Key Developments)
• The company reported $263 million in noncash after-tax impairment charges for the third quarter of 2025. These charges are primarily related to goodwill and intangible assets due to tariffs and lower projected equipment volumes in the U.S. (Key Developments)
• DENTSPLY SIRONA revised its 2025 earnings guidance, projecting net sales between $3.6 billion and $3.7 billion. Constant currency sales are expected to decline 4% to 5% year-over-year. (Key Developments)
• The Securities and Exchange Commission (SEC) concluded its investigation into DENTSPLY SIRONA with no intention to recommend enforcement action. This follows full cooperation from the company. (Key Developments)
• DENTSPLY SIRONA and Pearl announced a partnership to provide AI-assisted 2D X-ray radiologic support via DS Core. This partnership enables dental professionals to leverage AI-driven insights for more accurate diagnostics and treatment planning. (Key Developments)

Valuation Changes

• The Fair Value Estimate has decreased from $16 to approximately $13, reflecting a significant downgrade in the company's perceived intrinsic worth.
• The Discount Rate has increased from 9.8% to 10.6%, indicating that analysts are now assigning a higher risk premium to the company's future cash flows.
• The Revenue Growth Forecast remains largely unchanged, with expectations rising very slightly from 2.1% to 2.12% year-over-year.
• The Net Profit Margin has dropped from 6.3% to 4.5%, representing a notable decline in expected profitability.
• The Future Price-to-Earnings (P/E) Ratio has risen from 17.3x to 20.2x, signaling higher expected relative valuation despite a reduced earnings outlook.