第一季度更新：ALGN、HSIC、NVST、XRAY

Michael Sarcone, CFA * | Equity Analyst1 (212) 778-8606 | msarcone@jefferies.comPeter Warendorf * | Equity Analyst+1 (212) 284-2570 | pwarendorf@jefferies.comMatthew Taylor, CFA * | Equity Analyst1 (212) 778-8721 | matt.taylor@jefferies.comYoung Li * | Equity Analyst+1 (212) 778-8671 | young.li@jefferies.comMichael Toomey, CFA * | Equity Analyst+1 (212) 708-2630 | mtoomey2@jefferies.comMatthew Aspro * | Equity Associate+1 (212) 323-3907 | maspro@jefferies.com Summary of ChangesCompanyAlign TechnologyALGNPreviousDENTSPLY SIRONAXRAYPreviousEnvistaNVSTPreviousHenry ScheinHSICPrevious^Prior trading day's closing price unless otherwise noted.Please see important disclosure information on pages 12 - 17 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. RatingPrice^BUY$184.84HOLD$16.63HOLD$17.70HOLD$71.84 The Long View: Align TechnologyInvestment Thesis / Where We DifferDespite more limited visibility near term, we still like the long-term growthrunway and scope to take share vs wires & brackets. Over time, we expectALGN to drive organic revenue growth and improve profitability, owing to itshighly differentiated product offering, global scale, DTC marketing acumen,and unmatched R&D budget and new product innovation pipeline.Base Case,$260, +41%•LSD revenue growth in 2025•Co continues to buybacks shares•Price Target: $260 implies ~17x C25E EBITDASustainability MattersTop Material Issue(s):1) Supply chain management.ALGN is focused on creating a more sustainablesupply chain through packaging redesign and recycling, decreasing waste and emissions, and increasingrenewable energy use. In China, 100% of production waste is repurposed for floor tiles.2) Product designand lifecycle management.ALGN is piloting an aligner recycling program in the US and Brazil, wherethey have partnered with TerraCycle to provide recycling for old aligners that customers ship back to thecompany.Company Target(s):While ALGN does not currently have formal ESG targets, it is reviewing the SASBguidelines and will determine if relevant guidelines/targets make sense to implement in its business.Qs to Mgmt:1) Any preliminary takeaways from the SASB guideline review/initial ideas of how to alignthese values with the company? 2) Can we expect a Corporate Responsibility or ESG report from ALGNin coming years?Please see important disclosure information on pages 12 - 17 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. Upside Scenario,$330, +79%•2025 revenue growth HSD/LDD•Macro stabilizes•ASP improves as competition fades•New product cycle tailwinds in '24/25•Price Target:$330 assuming~22x C25EEBITDA Downside Scenario,$165, -11%•Macro remains tough, consumer confidenceworsens•Competition increases•Price Target:$165 assuming~10x C25EEBITDACatalysts•Uptake of new product launches (IPE, Lumina)•Accelerated share repurchases•Incremental traction with large DSOs (includingGPs)•China rebounds 3 Financials: Align TechnologyEstimate changesUSDRev. (MM)PreviousCons. EPSEPSPreviousQ1PreviousQ2PreviousQ3PreviousQ4PreviousValuation metricsP/RevFY P/EEV/RevPlease see important disclosure information on pages 12 - 17 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. 2023A3,862.38.618.601.822.222.142.422023A3.5x21.5x3.3x The Long View: DENTSPLY SIRONAInvestment Thesis / Where We DifferAs the largest global supplier of equipment and consumables to dentalprofessionals, XRAY is well-positioned to benefit from favorable seculartrends around digital dentistry.While we don't discount the work ahead, we are encouraged by the senseof urgency and aggressive turnaround steps already under way from newmanagement. We see an interesting turnaround story emerging here, withmedium-term EPS power closer to ~$3 (vs current ~$2).Base Case,$17, +2%•2025 revenue declines LSD.•Ongoing Phase 2 reorganization in 12-18months.•Byte relaunches•Price Target: $17 implies ~8.1x C25E EBITDA.Sustainability MattersTop Material Issue(s): 1) Product design and lifecycle managementprocesses have improvedsustainability through optimizing product design, which includes improved catheter coatings, recyclablepackaging and products, and removing heavy metal when possible.2) Product quality and safetyare ensured through XRAY’s Safety program, which includes complaint management, post-marketsurveillance, risk management, and quality management.Company Target(s)1)Reduce Scope 1 and 2 emissions by at least 15% by 2025 and achieve net-zerocarbon emissions (scope 1-3) by 2050 through switching lighting to LEDs, utilizing natural gas over oil,and using efficient equipment.2)Reduce total waste by at least 15% by 2025 through recycling, reductionof single-use plastics, and digitization.Questions to Management: 1)You’ve announced that you’re in the process of setting new 2030 emissionintensity reduction and water withdrawal intensity red