Baxter price target lowered to $52 from $57 at Wells Fargo

Wells Fargo analyst Larry Biegelsen lowered the firm’s price target on Baxter to $52 from $57 and keeps an Equal Weight rating on the shares after the company announced plans to spin off the Renal and Acute Therapies units into an independent company and explore strategic alternatives for BPS. The timing of the announcement was in line with expectations, although details of the restructuring differed from his expectations, the analyst notes. Additionally, Biegelsen believes outlook for the remaining Baxter is slightly worse due to a slower estimated WAMGR and higher cost/investment that will likely slow margin expansion. As such, he anticipates Baxter’s 2023 and LRP outlooks are to come in below current Street expectations.