Baxter initiated with a Neutral at UBS

UBS analyst Danielle Antalffy initiated coverage of Baxter with a Neutral rating and $43 price target as part of a sector note on U.S. Medical Supplies and Devices. Baxter shares are trading below 5-year historical averages, but UBS lacks visibility into the timing and extent of what could be a multiyear turnaround, the analyst tells investors in a research note. The firm is modeling Baxter driving less than 1% organic sales growth in 2023, with a 3% revenue CAGR 2022-2025, and thinks shares could likely be range-bound until Baxter can achieve several consecutive quarters of improving sales growth and margin expansion.