Analyst recommendations for Becton Dickinson
On April 23, 2017, Becton, Dickinson and Company (or BD) (BDX) announced the acquisition of C.R. Bard. Let’s take a look at the latest Wall Street analyst recommendations and target prices for BDX stock over the next year.
In a Reuters survey based on the recommendations of 15 brokerage companies, BD was given “buy” ratings by ~66.7% of the analysts. About 33.3% issued “hold” recommendations. None of them issued a “sell” recommendation for the stock.
The above graph provides a recommendation summary for BD over the next year. The stock’s consensus 12-month target price is $183.70, which amounts to a ~2.6% return potential over BD’s price of $179.10 on April 25, 2016.
According to analysts’ most recent recommendations, the lowest one-year target price for BD was $165, implying a return potential of ~11.7% over the next 12 months. BD’s highest one-year target price was $200, implying a -7.9% return potential over the next 12 months.
Peers Thermo Fisher Scientific (TMO), Medtronic (MDT), and Abbott Laboratories (ABT) have average broker target prices of ~$173.40, $87.80, and $48.10, respectively. These figures imply returns of 9.2%, 7.4%, and 10.0%, respectively, over the next 12 months.
ETFs with exposure to BD
If you’re interested in getting focused exposure to BD, you could consider investing in the iShares US Medical Devices (IHI). IHI has 5.1% of its total holdings in BD. It’s one of the largest US medical device ETFs and tracks the Dow Jones US Select Medical Equipment Index.
You may also want to consider investing in healthcare sector ETFs such as the Health Care Select Sector SPDR ETF (XLV) for exposure to BDX. XLV has ~1.4% of its total holdings in BDX.
For diversified exposure and to reduce company-specific risks, you can also check out the Vanguard Total Stock Market ETF (VTI), which has ~0.16% of its total portfolio in BD.