Morgan Stanley downgraded Dentsply Sirona Inc. on Tuesday, cutting its price target from US$21 to US$14 and moving the stock from “overweight” to “equal weight” as the dental sector faces growing pressures and investor caution.
The downgrade comes amid a 21 per cent decline in Dentsply shares so far this year, underperforming both its health-care peers and the broader S&P 500 index.
The investment bank cited broader policy headwinds and utilization trends across health-care services — including dental — as key concerns heading into the first quarter.
Meanwhile, Align Technology also saw its target price reduced, with Morgan Stanley cutting expectations from US$272 to US$249. However, the firm maintained its “overweight” rating on the company, which is best known for its Invisalign system.
Banks take opposite positions on Henry Schein
In the same vein, contrasting sentiment was seen earlier this year among Canadian banks on Henry Schein Inc., a major U.S.-based distributor of dental supplies and equipment.
National Bank of Canada more than doubled its stake in Henry Schein in the fourth quarter of 2024, increasing its holdings by 102.4 per cent to approximately US$75 million, according to its latest filing with the U.S. Securities and Exchange Commission (SEC). The bank now owns just under 0.9 per cent of the company’s stock.
Other institutional investors also expanded their positions. Franklin Resources Inc. increased its holdings by 137 per cent, and AllianceBernstein added more than 31,000 shares to its portfolio in the quarter.
By contrast, Bank of Montreal slashed its Henry Schein holdings by nearly 80 per cent during the same period. BMO reduced its position to about 145,690 shares worth US$10.1 million, down from more than 700,000 shares in the previous quarter.
The split comes as the dental sector adjusts to shifting dynamics in patient demand, rising costs, and uncertainty around public policy — including insurance coverage and health reform initiatives in both the U.S. and Canada.
