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On Tuesday, Barclays (LON:BARC) analysts lowered the price target for Becton Dickinson (NYSE:BDX) stock to $241 from a previous target of $261. The analysts maintained an Overweight rating for the company, aligning their sales and earnings per share (EPS) estimates with the management’s guidance. The stock currently trades near its 52-week low of $163.33, having declined nearly 28% over the past year. According to InvestingPro data, the company maintains strong fundamentals with a 54-year track record of consecutive dividend increases.
The analysts noted a slight increase in their 2025 sales estimate, driven by easing foreign exchange headwinds, though they expect a slower pace of organic growth in 2026 and beyond. This led to a reduction in sales estimates by less than 1% for those years. The EPS estimate for 2025 was reduced by approximately 2%, and by 7-9% for 2026 and beyond, factoring in the ongoing impact of tariffs as discussed during the company’s second quarter earnings call for fiscal year 2025. Recent InvestingPro analysis shows that 9 analysts have revised their earnings estimates downward for the upcoming period, though the company is expected to maintain profitability with current revenue of $20.87 billion.
Barclays’ new price target is based on a 12.5x enterprise value to EBITDA multiple, unchanged from previous assessments, on projected next twelve months EBITDA of $6.9 billion, down from $7.3 billion. This target multiple aligns with Becton Dickinson’s year-to-date average trading multiple, though it is below the 13-14x average trading multiple anticipated for calendar year 2024. It represents a step-up from the stock’s current trading multiple of approximately 10x next twelve months EBITDA.
The analysts emphasized that their valuation reflects a 1.5 to 2.5 turn discount compared to the stock’s long-term trading range of around 14-15x. They provided a detailed review of the changes to their estimates, which they summarized in supporting figures.
In other recent news, Becton Dickinson has faced several analyst adjustments regarding its stock rating and price targets. Citi downgraded the company from Buy to Neutral, setting a new price target of $185, citing challenges in predicting factors affecting its performance. Meanwhile, Jefferies reduced its price target to $255 but maintained a Buy rating, following the company’s second fiscal quarter results, which reported revenues of $5.27 billion and an earnings per share (EPS) of $3.35, exceeding consensus estimates. The company also updated its guidance for fiscal year 2025, lowering its organic sales growth forecast and adjusting its EPS guidance.
Raymond (NSE:RYMD) James downgraded Becton Dickinson from Outperform to Market Perform, expressing concerns over the company’s growth trajectory and difficulty in identifying innovations that could boost growth. Piper Sandler also downgraded the company to Neutral, reducing the price target to $185, due to concerns over the company’s execution and demand forecasting capabilities. The analysts noted underperformance in organic revenue growth across multiple segments and expressed skepticism about the company’s ability to provide achievable guidance.
Separately, Piper Sandler highlighted SOLV and ALGN as top value stocks in the medtech sector, noting their potential for growth and positive revisions in analysts’ estimates. The endorsement comes as these stocks are trading below historical valuation norms, offering opportunities for investors seeking value in the industry. These recent developments provide a snapshot of the current sentiment and expectations surrounding Becton Dickinson and other medtech stocks.
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