Lead
BofA Securities moved Dentsply Sirona Inc. (NASDAQ: XRAY) to a Buy rating from Neutral, raising its price target to $17 from $13. The analyst action comes as the dental equipment maker trades around $12.49 and is judged to be undervalued under InvestingPro analysis.
Valuation and earnings framework
BofA's new price target is anchored to a valuation multiple of 15 times an estimated 2026 earnings per share of $1.15, as set by analyst Allen Lutz. That metric contrasts with the company's most recent reported diluted EPS of -$4.43 for the trailing twelve months. Separately, consensus analyst estimates project EPS of $1.60 for fiscal 2025.
The firm said the risk/reward for Dentsply Sirona now leans positive as investors await the company’s guidance for 2026, which is expected next week. BofA specifically pointed to the potential for valuation expansion if the company can deliver even modest operational improvements through 2026.
Peer valuation gap
BofA noted that Dentsply Sirona currently trades at its widest discount on record relative to peer Envista Holdings Corp. The research note expects that disparity to narrow in 2026, a shift that could lift Dentsply Sirona's multiple if execution aligns with the bank's view.
Operational drivers
New management’s efforts to repair relationships with distributors were highlighted as a support for stabilizing growth over the medium term. According to BofA, progress in restoring those channel partnerships could underpin more predictable revenue flows and reduce execution risk.
Risks and potential volatility
The analyst cautioned that upcoming earnings announcements could provoke short-term volatility. Management may choose to cut the dividend, commit to higher levels of investment, or provide guidance below street expectations - moves BofA said could be disruptive in the near term but may also create attractive entry points for investors.
Recent corporate developments
Dentsply Sirona has taken several commercial and governance steps in recent weeks. The company renewed its U.S. distribution agreement with Patterson Dental Holdings, preserving access to its full dental technology portfolio including CEREC systems and Primescan intraoral scanners. It also expanded its partnership with Benco Dental so Benco will now distribute Dentsply Sirona’s complete range of dental technology solutions in the U.S., building on Benco’s existing distribution of the company’s consumables.
In boardroom and executive moves, Dentsply Sirona appointed Donald Zurbay, former President and CEO of Patterson Companies, to its Board of Directors. Zurbay will serve on the Board’s Audit and Finance Committee, bringing the board to 11 members. The company also named Mark R. Bezjak as Group Vice President of the Americas Regional Commercial Organization, effective January 28, 2026; Bezjak joins with over 20 years of experience at Zimmer Biomet.
Other industry note
Separately, Wellspect HealthCare launched the Surity™ Female External Catheter in the U.S., a product aimed at women with severe urinary incontinence. The product announcement was included among the industry updates cited alongside Dentsply Sirona’s activity.
Outlook
BofA’s upgrade reflects a valuation-anchored thesis combined with potential operational improvement from distributor repairs and leadership changes. The near-term path, however, includes identifiable catalysts for volatility tied to dividend policy, investment decisions and forthcoming guidance.
Note: Figures and company decisions described above are taken directly from the reporting on this corporate update.