Envista Holdings: Positive Growth Trends and Margin Improvements Drive Buy Rating
Envista Holdings has received a Buy rating from Allen Lutz, driven by positive core growth trends and expected margin improvements. The company is projected to finish 2025 stronger, aided by Spark's profitability shift and implant growth in North America. Despite market challenges, Envista's strategic reinvestments have shown potential for upside. While the VBP 2.0 cycle in China may pose a headwind, manageable impacts are anticipated. Margins are improving, with expectations of further enhancement by 2026, supported by a price objective of $25. TR | OpenAI – 4o also upgraded the stock to a Buy with a $22 target.
Allen Lutz has given his Buy rating due to a combination of factors including Envista Holdings’ positive core growth trends and anticipated margin improvements. The company is expected to conclude 2025 in a stronger position, driven by Spark’s shift towards profitability and improved implant growth in North America, despite a challenging market environment. Envista has effectively navigated a muted market by reinvesting in commercial efforts, with SP&T growth showing potential for upside if discretionary spending increases into 2026.
Moreover, while the VBP 2.0 cycle in China presents a potential headwind in the first half of 2026, the impact is expected to be manageable. The company’s margins have shown steady progress, though they have been somewhat constrained by tariffs and investments. These challenges are anticipated to ease by 2026, with improved Spark profitability and volume leverage further benefiting margins. Additionally, if the developed market premium implant and aligner market expands, it could significantly enhance margin progression. These factors support the reiterated Buy rating with a price objective of $25.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $22.00 price target.
