Baxter International (BAX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegelsen from Wells Fargo maintained a Hold rating on the stock and has a $33.00 price target.
Larry Biegelsen has given his Hold rating due to a combination of factors impacting Baxter International’s financial outlook. The company has shown strong performance in the first quarter of fiscal year 2025, with notable adoption of Novum IQ and a recovery in IV solutions. However, the impact of tariffs presents a significant challenge, as Baxter is expected to absorb a $60-70 million headwind to its earnings per share for the year, primarily affecting the second half of 2025.
Baxter’s management remains committed to margin expansion, but the uncertainty surrounding tariff impacts has led to a more cautious outlook. The company’s guidance for sales growth in the second quarter is below previous estimates, primarily due to ongoing conservation of IV fluids. Despite these challenges, Baxter anticipates an acceleration in sales growth and margin improvement in the latter half of the year, driven by easier comparisons, improved supply, and new product launches. These mixed signals contribute to the Hold rating, as the potential for growth is balanced by the risks posed by external factors.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $40.00 price target.
BAX’s price has also changed moderately for the past six months – from $35.870 to $30.670, which is a -14.50% drop .