08:03:39 EDT Sat 18 May 2024
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Globe says Dentalcorp Holdings maintained at "buy"

2023-10-20 08:03 ET - In the News

The Globe and Mail reports in its Friday, Oct. 20, edition that Desjardins Securities analyst Gary Ho continues to rate Dentalcorp Holdings "buy." The Globe's David Leeder writes that Mr. Ho trimmed his share target by a loonie to $11.50. Analysts on average target the shares at $12.27. The Globe says Mr. Ho cites the contraction in peer valuations for his share cut. Mr. Ho says in a note: "We expect 3Q revenue and SSSG [same-store sales growth] to be at the lower end of guidance, with 2H acquisitions skewed toward 4Q; we maintain our EBITDA margin. We model Dentalcorp Holdings self-funding acquisitions going forward; consequently, deleveraging will be primarily driven by EBITDA growth. We view Dentalcorp as a quality compounder given its (1) proven M&A playbook in a fragmented market; (2) organic growth outlook; (3) compelling financial profile with resilient top-line growth and growing cash flows; and (4) recession-resistant attributes." The Globe reported on March 25 that BMO Capital analyst Stephen MacLeod rated Dentalcorp "outperform" when it could be had for $9.09. The Globe reported on Oct. 5 that Stifel analyst Justin Keywood had reaffirmed his "buy" call on Dentalcorp when it was worth $6.17.

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