XRAY: New Leadership And Turnaround Plan Will Drive Long-Term Recovery Potential

DENTSPLY SIRONA’s analyst price target has been revised modestly lower to $12.96 per share from $13.00, as analysts factor in softer earnings performance, reduced guidance, and ongoing leadership transitions, despite a still constructive long term recovery narrative.

Analyst Commentary

Analysts are reassessing DENTSPLY SIRONA’s risk reward profile in light of weaker execution, reduced guidance, and leadership turnover, resulting in a cluster of lower price targets and more tempered expectations for the timing of any recovery.

Bullish Takeaways

• Bullish analysts still see long term upside potential, with at least one high conviction target in the low 20 dollar range implying meaningful rerating if management delivers on its growth plan.
• The updated return to growth action plan outlined by the new CEO is viewed as a credible framework that could begin to support re acceleration and margin improvement from the second half of 2026 onward.
• Despite recent volatility, some forecasts assume that near term U.S. headwinds and mix issues are cyclical rather than structural, supporting the case for multiple expansion once earnings stabilize.
• The maintained Buy view at a higher target level signals that select investors still regard the current dislocation as an opportunity to gain exposure ahead of a multi year turnaround.

Bearish Takeaways

• Bearish analysts are focused on execution risk, citing Q3 EBITDA and EPS misses and broad based guidance cuts as evidence that the turnaround is likely to be longer and more complex than initially expected.
• Ongoing leadership disruption, including another CFO departure after a brief tenure, heightens concerns around strategic continuity and raises the risk of further estimate resets.
• The downgrade in rating and shift to more muted price targets in the low teens reflect skepticism that management can quickly offset lower volumes, unfavorable mix, and tariff headwinds.
• U.S. market challenges are viewed as deeper than previously appreciated, limiting confidence in near term growth and constraining the scope for multiple expansion over the next 12 to 24 months.

What's in the News

• Appointed seasoned finance executive Michael Pomeroy as interim Chief Financial Officer, while CEO Dan Scavilla remains principal financial officer until a permanent CFO is named (Company filing).
• Announced the departure of CFO Matthew E. Garth, effective November 5, 2025, and initiated a formal search process for his successor (Company filing).
• Revised 2025 guidance to net sales of $3.6 billion to $3.7 billion, with constant currency sales expected to decline 4% to 5% year over year (Company guidance).
• Recorded a $263 million noncash after tax impairment charge in Q3 2025 related to goodwill and intangible assets, driven by tariffs and lower projected U.S. equipment, implant, and prosthetics volumes (Company results).
• Completed the strategic review of Wellspect Healthcare and decided to retain the business, citing stronger long term value creation as part of DENTSPLY SIRONA’s portfolio (Company announcement).

Valuation Changes

• Fair Value Estimate: Effectively unchanged at approximately $12.96 per share, indicating a stable intrinsic value assessment.
• Discount Rate: Fallen slightly from about 10.57% to 10.21%, reflecting a modest reduction in perceived risk or required return.
• Revenue Growth: Essentially unchanged at approximately 2.12% annually, signaling a steady medium term growth outlook.
• Net Profit Margin: Flat at roughly 4.51%, suggesting no material change in expected long term profitability.
• Future P/E: Edged down slightly from about 20.23x to 20.04x, pointing to a marginally lower valuation multiple on expected earnings.