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Investing.com - Baxter International (NYSE:BAX), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $15.9 billion, received a reiterated Neutral rating and $34.00 price target from Citi following the announcement of a new CEO. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.
Baxter announced the appointment of Andrew Hider as its next CEO, who is expected to assume the position no later than September 2025. Hider has served as CEO of ATS Corporation since 2017, a company that provides advanced automation solutions across multiple industries. The appointment comes as Baxter maintains its 55-year streak of consecutive dividend payments, despite recent challenges reflected in its negative earnings over the last twelve months.
Citi noted that while Hider’s background is "further afield from MedTech," his experience managing a global diversified company focused on automating solutions, including those for medical devices and pharmaceuticals, should be well received by investors.
The research firm highlighted Hider’s focus on revenue and EBITDA growth as positive attributes he brings to the role. Citi also viewed the appointment of "a fresh set of eyes after a significant corporate overhaul" as a positive development.
Citi maintained its Neutral stance on Baxter International, suggesting the CEO appointment marks "the next phase of Baxter" following its recent restructuring efforts.
In other recent news, Baxter International reported its first-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $0.55, compared to the forecast of $0.48. The company also exceeded revenue projections, posting $2.63 billion against an anticipated $2.59 billion. This strong performance was supported by significant growth in U.S. Infusion systems and Nutrition sales. Additionally, Baxter announced the signing of a new five-year credit agreement, increasing its borrowing capacity to $2.2 billion, replacing a previous €200 million facility. The agreement allows Baxter to secure funds in multiple currencies and extends the maturity date. Meanwhile, BofA Securities reiterated its Neutral rating on Baxter, noting the appointment of a new CEO with a strong track record in transforming company portfolios through mergers and acquisitions. UBS also maintained a Neutral rating, citing ongoing questions about the CEO transition and future strategic direction. These developments highlight Baxter’s proactive financial restructuring and strategic planning efforts.
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