Henry Schein Reinstates Share Buyback Plan; Street Sees 30% Upside


Henry Schein announced the reinstatement of its stock repurchase program. Shares of the world’s largest provider of healthcare solutions to office-based dental and medical practitioners closed about 1.7% higher on Friday.

Henry Schein’s (HSIC) announcement comes after it entered into amendments to its private placement facility agreements, which permitted the company to reinstate the program. As of the fiscal year ended 2020, the company had $201 million of its share repurchase authorization.

Henry Schein CEO Stanley M. Bergman said, “Our solid cash flow has enabled us to continue to invest in the business, both through strategic acquisitions and share repurchases, reflecting our commitment to continue to deliver an attractive return on capital.” (See Henry Schein stock analysis on TipRanks)

On Feb. 18, Barrington analyst Michael Petusky increased the stock’s price target to $80 (27.9% upside potential) from $72 and reiterated a Buy rating following the company’s “solid Q4 results.”

In a note to investors, Petusky said, “While dental patient traffic remains well below pre-COVID levels, the company has continued to deliver results via incremental personal protective equipment and COVID-19 related business.”

The consensus rating among analysts is a Strong Buy based on 4 Buys versus 1 Hold. The average analyst price target stands at $81.20 and implies upside potential of almost 30% to current levels. Shares have gained about 15% over the past year.

Additionally, Henry Schein scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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