BD’s analyst recommendations
Becton, Dickinson, and Company (BDX), or BD, is one of the largest medical technology companies in the United States. It has a leadership position in a number of businesses, including medication management, dispensing, and safety.
According to Reuters, of the 15 firms tracking BD, ~67% of analysts have recommended a “buy” for BD—of which 70% have given a “strong buy” recommendation. Around 33% recommend a “hold, but no analysts have given a “sell.”
As of October 6, 2017, the analysts’ consensus 12-month target price for BD stock is $207.88, implying a return potential of ~5.4% over the next 12 months, based on the stock’s closing price of $197.25 on October 5.
BD’s highest target price for the next 12 months stands at $230, while the lowest 12-month target price is $146. On the basis of these target prices, the maximum 12-month potential return for BD stock is now 16.6%, while the maximum downside risk in the stock is -26%.
On September 12, 2017, Piper Jaffray reiterated its “buy” rating on BD stock, with a 12-month target price of $213 per share. On September 22, 2017, RBC Capital Market reaffirmed its “hold” rating, with a 12-month target price of $210 per share.
By comparison, Thermo Fisher Scientific (TMO), Abbott Laboratories (ABT), and Medtronic (MDT) have average broker target prices of $207.00, $56.00, and $91.11, respectively. These figures imply returns of 7.0%, 2.0%, and 14.6%, respectively, over the next 12 months.
For diversified exposure to BD, investors can take a look at the Vanguard S&P 500 ETF (VOO). BD accounts for ~0.20% of the VOO‘s total portfolio holdings.
In the next part of this series, we’ll discuss BD’s recent stock performance.