September 27, 2013
Patterson Companies, Inc. hosted their annual analyst meeting in New York earlier this week. Experts at R.W. Baird came away asserting that end markets are stable and that the mid-point guidance for fiscal year 2014 remains realistic, while “upside beyond remains a stretch.”
The August 2013 dental survey shows sluggish equipment demand, improved patient volume
“Combined with current valuation and investor expectations that feel a bit high to us across both dental and FY'14/'15 EPS, we're maintaining our Neutral rating and patiently waiting for signs management can someday return to delivering core OM% expansion and consistent double-digit EPS growth.”
As far as investment advice goes, Baird analysts “continue to like” dental for a few reasons: an aging population, an increasing middle class, positive pricing trends, and scarce risks.
See more of what the experts got from the meeting, particularly their take on PDCO, in the PDF: Analyst Day Recap.
