RBC Capital Cuts dentalcorp Price Target By 10%

• dentalcorp Holdings Ltd (TSX:DNTL) price target has been lowered to C$18 from C$20 by RBC Capital analyst Douglas Miehm. The analyst has an Outperform rating on the shares.
• Miehm states that 1Q22 revenues and adjusted EBITDA came marginally above RBCe and consensus. dentalcorp reported same practice sales growth (adjusted) of ~2.2-2.7% y/y in 1Q22 when adjusted for the ~5.5-6.0% y/y impact due to patient cancellations and lost provider days as a result of Omicron.
• The analyst mentions that dentalcorp acquired adjusted EBITDA (IFRS) of $25 million in Q1 at ~8.8x EBITDA multiple.
• Miehm lowered the forecasts as he anticipates the continued impact of COVID-19 on revenue and margins.
• Price Action: DNTL shares are trading lower by 2.91% at C$12.33 on TSX on the last check Wednesday.