Henry Schein upgraded at Evercore ISI on potential margin gains

[Sign for Wall Street in New York City]
Pharrel Wiliams

Evercore ISI upgraded Henry Schein (NASDAQ:HSIC [https://seekingalpha.com/symbol/HSIC]) to Outperform from In-Line on Tuesday, citing higher operating margins at the dental and medical product supplier due to a raft of initiatives announced by the company recently.

Analyst Elizabeth Anderson argued that the initiatives, including automation, a new Global Ecommerce Platform (GEP), a more efficient salesforce, and product mix adjustments such as private-label expansion, could provide HSIC with ~200–400 bps of operating margin opportunity.

While at the more conservative ~200 bps level, the operating profit benefit of the initiatives could lead to an earnings power exceeding $7 in 2027 even as the company’s organic revenue growth is expected to remain in the low-single-digit range over the next few years, Anderson noted.

“The Street is under-modeling the potential revenue and/or operating profit benefit of initiatives that are just kicking off that could benefit the company by ~200-400 bps,” Anderson wrote, raising her price target on Henry Schein (NASDAQ:HSIC [https://seekingalpha.com/symbol/HSIC]) to $83 from $70 per share.

“Further normalization towards historical trends would provide additional upside to our estimates, but the current growth outlook remains muted,” the analyst wrote.

MORE ON HENRY SCHEIN

* Henry Schein: The Case For An Upgrade From Hold To Buy [https://seekingalpha.com/article/4813724-henry-schein-the-case-for-an-upgrade-from-hold-to-buy]
* Henry Schein, Inc. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4808758-henry-schein-inc-2025-q2-results-earnings-call-presentation]
* Henry Schein, Inc. (HSIC) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4808756-henry-schein-inc-hsic-q2-2025-earnings-call-transcript]
* Short bets on S&P 500 Healthcare sector ease in July; Moderna remains most heavily shorted stock [https://seekingalpha.com/news/4485246-short-bets-on-sp-500-healthcare-sector-ease-in-july-moderna-remains-most-heavily-shorted-stock]
* Henry Schein maintains 2025 EPS guidance and targets over $100M in annual cost savings as CEO transition begins [https://seekingalpha.com/news/4478572-henry-schein-maintains-2025-eps-guidance-and-targets-over-100m-in-annual-cost-savings-as-ceo]