TipRanks

Notifications

Henry Schein Takes Major Stake in eAssist Dental Solutions

Henry Schein (HSIC) has revealed that it has acquired a 70% ownership stake in eAssist Dental Solutions.

The financial terms of the deal have been kept under wraps. The deal is expected to be modestly dilutive to the company’s financial results in 2021, and to be accretive thereafter.

Henry Schein is a global distributor of health care products and services to office-based dental and medical practitioners, with a presence in 32 countries.

The addition of eAssist will enhance HSIC’s goal of providing best-in-class solutions to help the dental world increase efficiency and profitability. (See HSIC stock analysis on TipRanks)

eAssist Dental Solutions develops virtual dental billing outsourcing services with recorded sales of $31 million in 2020. It uses a mix of technology and human expertise, helping dental practitioners simplify operations, reduce cash flow-related stress, and free up resources to focus on patient care and clinical outcomes.

Henry Schein CEO Stanley M. Bergman commented, “We are delighted to add eAssist to our leading portfolio of value-added services, which will help our customers improve their critical insurance and billing functions so dental teams can focus on delivering quality patient care.”

Stifel Nicolaus analyst Jonathan Block recently maintained a Hold rating and the price target of $77 (2.3% downside potential) on the stock.

Block raised his Q2 EPS estimates from $0.92 to $1 after HSIC’s CEO commented on upbeat business trends and stable margins.

He further added, “The gross margin rebound seen in 1Q21 appears likely to remain intact, with management noting that the margin performance was tied to underlying business trends, rather than PPE sales. Looking forward, management expects gross margin to remain stable, with any margin fluctuation likely tied to operating expenses as certain items (travel, etc.) come back online.”

Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The HSIC average analyst price target of $81.83 implies 3.9% upside potential from current levels. Shares of HSIC have jumped 40.8% over the past year.

Related News:
United States Steel Sells Transtar for $640M, Shares Rise 3%
Southwest Airlines Foresees Revenue Growth; Orders 34 More Boeing 737 MAX Aircraft
CareDx Acquires Transplant Hero, Shares Rise

Tags: ,
Devina Lohia
Devina Lohia, who has 15 years of experience in the equity research domain, writes stock analysis articles for TipRanks. Over the years, she has emerged as a multi-sector specialist in assessing stocks in the Healthcare, Airlines, Banks, Consumer, Utilities, and Technology sectors. Her expertise in understanding the financial markets of the U.S., the U.K., and Asia is second to none. Before joining TipRanks in 2021, she honed her research and analytical skills at Value Investments Principals where she would screen stocks and initiate coverage on them. Many of her stock recommendations have proven to be multi-baggers for her clients. She has also worked with CreditPointe Services, a financial services company, and Zacks Research, a leading investment research firm, which focuses on stock research, analysis, and recommendations.