Baxter downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Drew Ranieri downgraded Baxter to Equal Weight from Overweight with a price target of $55, down from $70. Medical device sentiment "remains muted" heading into 2023 and while the year could prove less difficult than 2022, "the coast is not clear," Ranieri tells investors in a research note. The analyst downgraded the industry to In-Line. For Baxter, while Ranieri still sees longer-term opportunity from the Hillrom transaction, he admits that he failed to appreciate the magnitude that macroeconomic factors would have on the company’s legacy business and Hillrom’s product portfolio. In addition visibility on the go-forward business remains limited, contends the analyst.