Shares of dental suppliers are declining after a Robert W. Baird & Co. analyst reduced his rating on two stocks, saying patients are cutting back on spending.
Analyst Jeff Johnson downgraded Dentsply and Patterson stock to "Neutral" from "Overweight." He said surveys indicate that fewer patients are visiting the dentist, and fewer are willing to spend money on "higher-end restoration work." Johnson said the decrease was slight, but he reduced his sales growth forecast.
The analyst said dental supply stocks usually trade based on organic sales growth and not profit growth. He made small adjustments to his profit forecasts. Johnson cut his price target on Dentsply shares to $42 from $48, and lowered his target on Patterson stock to $38 per share from $41.
Demand for x-ray products and dental equipment is slightly stronger than demand for consumables, he said.
In afternoon trading, shares of Dentsply International Inc. fell $2.33, or 5.9 percent, to $37.30.
Patterson Cos. stock slid $1.56, or 4.4 percent, to $34.29.
Henry Schein Inc. shares gave up 53 cents to $56.57.
Shares of Young Innovations Inc. dipped 9 cents to $17.47.
Shares of Sirona Dental Systems Inc. resisted the trend, picking up a penny to $27.31.
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