The dental equipment and supplies manufacturing company’s stock rose 7.6% on Wednesday and 2.8 percent in after-hours trading to end at $45.99.
The Intra-Oral Scanner (IOS) business of Carestream Dental has been acquired by Envista Holdings Corporation (NVST). The acquisition price has been set at $600 million, and the deal will be completed in the second quarter of 2022.
Envista will be able to strengthen its emphasis on fast-growing dental market sectors and produce innovative solutions through the digitization of dental processes as a result of this agreement. Envista’s Equipment and Consumables sector, as well as its Specialty Products and Technologies section, are said to benefit from the acquisition.
WALL STREET’S TAKE
Envista CEO, Amir Aghdaei, said, “We are excited to add a suite of world-class intra-oral scanners and software to our portfolio. This acquisition further enables our purpose of partnering with dental professionals to improve patients’ lives by digitizing, personalizing, and democratizing dental care.”
Following the news, Piper Sandler analyst Jason Bednar maintained a Hold rating on the stock with a price target of $47 (5% upside potential).
Meanwhile, the Street is optimistic about the stock with a Strong Buy consensus rating based on 4 Buys and 1 Hold. The Envista stock price prediction of $50.40 implies 10.55% upside potential.
INCREASED HEDGE FUND ACTIVITY
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Envista is currently Very Positive, as the cumulative change was an increase of one million shares in holdings across all 7 hedge funds that were active in the last quarter.