DENTSPLY SIRONA (XRAY) Stock Forecast & Price Target

Dentsply Sirona has experienced notable sales growth, particularly in Europe, where reported sales increased by 9.9% and 2.6% on a constant currency basis, indicating resilience in its market performance. The company’s Wellspect Healthcare segment has also shown strong momentum, with reported revenue up 15.6% and an impressive 30%-plus operating margin, which positions it as a significant growth driver for the firm. Furthermore, expectations of improved operating expenses as a percentage of revenue for the upcoming years suggest a focus on increasing operational efficiency, enhancing the overall financial outlook for Dentsply Sirona.

Dentsply Sirona has revised its sales outlook downward for fiscal year 2025, now anticipating a decline of 4% to 5% in constant currency, worsening from a previous estimate of a 2% to 4% drop. Key financial metrics indicate a significant reduction in both gross margin and adjusted EBITDA margin, with GAAP gross margin expected to decline by 160 basis points and adjusted EBITDA margin forecasted to fall below 18% from over 19%. Furthermore, the company's orthodontics and implants segment is projected to suffer a 15% revenue decline, driven largely by challenges related to the Byte business, which could impede the overall growth trajectory for Dentsply Sirona.