BofA analyst Travis Steed raised the firm’s price target on Baxter to $45 from $42 and keeps a Neutral rating on the shares after the company issued an 8K that said it has been in recent discussion with select private equity investors to explore a potential sale of kidney care asset in lieu of the proposed spinoff. While the firm estimates that the overall financial impact of a sale is “about the same as a spin,” it thinks a sale is likely better for Baxter shareholders, the analyst tells investors. The firm thinks the value of a sale could be around $2.5B, putting after tax proceeds to Baxter closer to $2B, the analyst added.
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