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Wall Street Shows Confidence in BAX Stock

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Analysts’ recommendations

Baxter International (BAX), one of the United States’ leading medical technology companies, offers renal and hospital solutions to healthcare providers. The company has witnessed strong growth momentum recently, and Wall Street has grown increasingly bullish on the company’s growth prospects. In this article, we’ll look at analysts’ recent recommendations, ratings, and price targets for BAX stock.

On January 4, 2018, of 17 Reuters-surveyed analysts covering Baxter, ten (~59%) had recommended “buy” or “strong buy,” six (~35%) had recommended “hold,” and one had recommended “sell.” A month prior, six analysts had recommended “buy,” and most (56%) had recommended “hold.” These recommendations are summarized in the above table.

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Recommendation revisions and updates

On January 2, 2018, Bank of America upgraded its recommendation for BAX stock from “hold” to “buy.” It has a 12-month target of $73 per share for the stock. On November 22, 2017, Royal Bank of Canada reiterated its “hold” recommendation, with a target price of $66.

BAX’s target prices

Wall Street analysts’ 12-month target price for Baxter stock is $71.73 per share. This target price implies a 12-month return of approximately 5.1% based on its closing price of $68.25 on January 3, 2018.

On January 4, 2018, analysts’ 12-month target prices for peers Thermo Fisher Scientific (TMO), Boston Scientific (BSX), and Abbott Laboratories (ABT) were $218.90, $31, and $63.30, respectively. These targets represent potential 12-month returns of approximately 11.4%, 21.3%, and 7.4%, respectively.

Investors could consider the iShares Core S&P 500 ETF (IVV) for diversified exposure to Baxter International. IVV has a ~0.15% exposure to BAX. Next, we’ll discuss major drivers of Baxter’s profit margins.

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