6 Oct

Behind BD’s Latest Analyst Recommendations

WRITTEN BY Sarah Collins

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.”

Behind BD’s Latest Analyst Recommendations

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.

Target prices

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.

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