Envista Holdings Corp. (NYSE:NVST) shares rose 2.3% in premarket trading on Thursday after JPMorgan upgraded the dental products company ahead of its September 17 Investor Day.
JPMorgan analyst Lilia-Celine B Lozada raised Envista to Overweight from Neutral and increased the price target to $32 from $29.
“Heading into Envista’s September 17th Investor Day, we are upgrading shares to Overweight as we believe the company is entering the event from a position of improved execution, a more durable organic growth algorithm, and a valuation that has not fully kept pace with strengthening fundamentals,” Lozada commented.
JPMorgan Assesses Medium-Term Growth Outlook
Lozada expects Envista management to present a medium-term core growth framework modestly above its previous range of 2% to 4%, potentially setting a range of 2.5% to 4.5% or 3% to 4%.
Those potential ranges would broadly encompass Wall Street estimates of approximately 3.5% growth for 2027 and subsequent periods.
The analyst said that while the Spark deferral benefit and initial implant market share gains are now behind the company, Envista appears positioned to maintain mid-single-digit underlying growth through execution and market share gains in implants and clear aligners.
“In a market where consistency and quality in MedTech have become scarcer, we believe Envista merits a higher multiple than where it’s currently trading, particularly if management continues to prove that a durable mid-single-digit underlying growth profile is achievable, an outcome that would make the current valuation look even more compelling,” the analyst added.
Dental Market Conditions Remain a Factor
JPMorgan identified macroeconomic conditions as the principal variable affecting its outlook, citing the dental market’s exposure to discretionary consumer spending and consumer confidence.
However, Lozada said Envista’s execution has been better than expected amid elevated uncertainty and that demand has been more resilient than previously anticipated.
The company’s Investor Day is scheduled for September 17.
Envista Holdings stock price
