Becton, Dickinson and Company (BDX), or BD, is set to release its 1Q16 earnings results on February 3, 2016. In a Bloomberg survey of 20 brokerage firms, as recorded on January 20, 2016, about 55% of firms rated BD as a “buy” and 45% of firms rated the company as a “hold.” None of the brokerage firms rated BD as a “sell.”
The table above lists the 14 brokerage firms that provided a target price for BD over the next 12 months. The consensus 12-month target price for BD was $167.40, amounting to a 17.4% return, compared with the company’s last price of $142.50 on January 19, 2016.
BD’s share price movement
As of January 20, 2016, BD’s stock was trading 9.9% above its 52-week low and 10.1% below its 52-week high. The company’s stock has risen approximately 29% over the last two years. Becton, Dickinson and Company is one of the most diversified companies among the major players in the US medical device industry and is the largest player in the medication management and safety needles market. BD’s diversified and broad product portfolio, presence in emerging markets, unrivaled economies of scale, powerful brand recognition, and consistently strong financial performance make it one of the most attractive growth stocks. Though BD has acquired a significant level of debt due to the acquisition of CareFusion, it is on track to deliver a strong financial performance and significant integration synergies from the acquisition.
Investors seeking focused exposure to Becton, Dickinson and Company can invest in the iShares US Medical Devices ETF (IHI), which has exposure to some of the major companies in the medical device industry. BD accounts for 5.5% of the ETF, whereas leading medical technology players Medtronic (MDT), Stryker (SYK), and Abbott (ABT) account for 14.8%, 5.4%, and 9.3%, respectively, of IHI’s total holdings.