dentalcorp Holdings Ltd T.DNTL

RE:TD

[retiredcf]

More details. GLTA

dentalcorp Holdings Ltd. (DNTL-T) dentalcorp is in the midst of a strategic review currently which has the potential to surface additional value for shareholders, including through a possible take-private transaction. Regardless, we anticipate that dentalcorp will demonstrate improving results across 2023 as the impacts of COVID-19 wane and its practices are able to increase their daily patient throughput, providing strong organic growth tailwinds and operating leverage. Additionally, we expect to see organic growth momentum from its orthodontics and implants insourcing agendas. Historically, dentistry has been a very recession resistant industry as an essential healthcare service and given unrestricted pricing autonomy. dentalcorp does operate with higher balance sheet leverage of ~4.3x (50% of which is exposed to variable interest rates), but, in our view, it does not face undue risk given the resiliency of its cash flows. We also see potential for rising interest rates to temper industry valuations as the associate dentist is the largest acquirer of practices (generally financing with personal guarantees).