Analyst Josh Jennings from TD Cowen maintained a Hold rating on Baxter International and decreased the price target to $26.00 from $40.00.
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Josh Jennings has given his Hold rating due to a combination of factors surrounding Baxter International’s recent financial performance and future outlook. The company’s second-quarter revenue and earnings per share (EPS) fell slightly below market expectations, with revenue from continuing operations totaling $2.81 billion compared to the consensus forecast of $2.82 billion. Although the reported and operational sales growth met the lower end of the company’s guidance, the performance of Baxter’s Medical Products & Therapies (MPT) division was notably weaker than anticipated, contributing to a downward revision of the 2025 growth outlook for this segment.
Furthermore, the company’s overall operational sales growth and EPS forecasts for 2025 have been adjusted downward, reflecting a more conservative growth trajectory. The sales figures for both the MPT and Pharmaceuticals divisions lagged behind expectations, while Healthcare Systems & Technologies (HST) managed to exceed the consensus estimate. Additionally, both gross and operating margins were below the Street’s assumptions, further influencing the Hold rating. These elements combined suggest a cautious approach to Baxter’s stock, as the company navigates these challenges and recalibrates its growth expectations.
According to TipRanks, Jennings is a 3-star analyst with an average return of 2.0% and a 49.90% success rate. Jennings covers the Healthcare sector, focusing on stocks such as TransMedics Group, Boston Scientific, and Abbott Laboratories.
In another report released on July 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $28.00 price target.