Henry Schein (HSIC) Stock Forecast & Price Target

Henry Schein Inc has demonstrated robust performance across its segments, particularly with reported revenue growth of 4.7% in medical products and a significant 7.4% increase in the global technology segment, indicating strong demand and effective market penetration. The dental business also shows resilient growth, with a 2.7% increase in revenue, supported by a notable 7.2% rise in international dental operations, which highlights the company's global reach and diversification. Projected growth in adjusted EBITDA in the mid-single digits for 2025 further solidifies a positive financial outlook, reflecting the company's ability to sustain profitability amid evolving market conditions.

Henry Schein's stock outlook appears negative due to significantly underwhelming profitability results, as the company's gross margin declined to 31.4%, falling 110 basis points year-over-year and missing expectations by 60 basis points. Revenue from US dental merchandise experienced a decline of 1.2% amid pricing pressures, while international revenue, despite a nominal increase, showed a decrease on a local internal basis, signaling potential challenges in overall demand. Additionally, projected adjusted EBITDA for FY/25 has been revised downward to $1.090 billion, reflecting concerns regarding the sustainability of profitability and growth amidst a contracting margin environment.