BofA downgrades Baxter to Neutral, prefers Becton Dickinson

As previously reported, BofA analyst Travis Steed downgraded Baxter (BAX) to Neutral from Buy with a price target of $55, down from $66. While the reversion trade is "still a valid thesis" for Baxter, he thinks Becton Dickinson (BDX) would also benefit from some of the same forces and has a preference for the latter given what he sees as its path for multi-year double digit EPS growth. While portfolio announcements seem "very likely" for Baxter it is "not clear how much immediate value can be created" and it will likely take time for investors to price in longer-term value creation, Steed said.