Baxter downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Robbie Marcus downgraded Baxter International to Neutral from Overweight with a price target of $55, down from $68. A "recovery trade" isn’t likely until the back half of 2023, as Baxter has a "lot to prove until investors feel comfortable buying back into the story," Marcus tells investors in a research note. Belief that estimates have finally bottomed and can move higher is needed, and that point hasn’t been reached yet, contends the analyst. Marcus says that while Baxter’s valuation already represents a meaningful discount to peers, between his view that there might still be more downside to earnings estimates into 2023 and a lack of visibility into a near-term recovery, he finds it prudent to move to the sidelines for now.