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.
