PDCO – Could New Management Push Shares Higher?

Gabelli Research Analyst Kevin Kedra talks Patterson Companies (NASDAQ: PDCO)

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Hi, my name is Kevin Kedra, and I’m a healthcare research analyst here at Gabelli.

Today I want to talk about Patterson Companies, ticker PDCO, a leading distributor of dental and veterinary products based in St. Paul, MN.

Patterson recently announced a leadership change with the company’s CEO stepping down following several challenging quarters for the company’s dental business. We believe that this change in management could be a catalyst for the company to not only address weakness in its dental services business, but to also consider other strategic alternatives. Both dental and animal health are attractive end markets with favorable demographic trends and cash-pay orientated business models.

We estimate that the company will earn $2.35 per share in 2017 and grow EPS at 8-10% annually through 2021. We calculate a 2018 Private Market Value of $58 per share.

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