Becton Dickinson, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Travis Steed from Bank of America Securities maintained a Hold rating on the stock and has a $190.00 price target.
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Travis Steed has given his Hold rating due to a combination of factors impacting Becton Dickinson’s current performance and future outlook. The company recently announced a transition plan with the departure of its CFO, which adds uncertainty to its strategic direction. Additionally, the preannounced Q4 results showed a revenue miss, with growth expected to be lower than market expectations, although the EPS is anticipated to meet or slightly exceed guidance.
Despite these challenges, there are positive aspects to consider. The medtech segment is showing consistent growth, and the company’s valuation appears attractive given its growth rate. However, the recurring pattern of missing guidance has raised concerns about the company’s credibility among investors. The upcoming long-range plan requires significant margin expansion, which adds pressure on the company to deliver. Therefore, the Hold rating reflects a cautious stance as the company works to rebuild its credibility and execute its strategic plans.
Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Intuitive Surgical, and Medtronic. According to TipRanks, Steed has an average return of 6.0% and a 56.68% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $183.00 price target.