Envista (NVST) stock volatility following its investor day reflects investor expectations against the magnitude of its outlook rather than any negative news, UBS said in a note Thursday.

The report also pointed to a lack of M&A, adding that consumer factor flows were also a contributing factor.

"We view the updated plan as prudent given the poor macro environment," the note said.

The note said its free cash flow generation provides adequate support for 7% to 11% EPS growth over the medium term.

"We continue to see a balanced risk reward skew at current levels given the potential impact from macro, offset by valuation which screens attractively on both an absolute and relative basis," the report said.

UBS kept its neutral rating while lowering its price target to $27 from $30.

Price: 23.40, Change: -0.30, Percent Change: -1.25