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Investing.com - TD Cowen has lowered its price target on Baxter International (NYSE:BAX) to $26.00 from $40.00 while maintaining a Hold rating on the medical products company. Currently trading at $22.10, the stock is near its 52-week low, though InvestingPro analysis suggests the company is undervalued.
The price target reduction follows Baxter’s second-quarter results, which showed revenue of $2.81 billion and earnings per share of $0.59, missing Wall Street expectations of $2.82 billion and $0.61 respectively, though hitting the low end of the company’s guidance. Despite current challenges, the $11.33B market cap company has shown strong revenue growth of 15.36% over the last twelve months. Get deeper insights with a comprehensive Pro Research Report, available exclusively on InvestingPro.
TD Cowen noted that Baxter’s Medical (TASE:BLWV) Products and Therapies (MPT) segment underperformed in the second quarter, prompting the company to reduce its 2025 growth outlook for the division to 3-4% from approximately 5% previously.
The reduced MPT growth forecast is partly attributed to a newly implemented shipping pause for Novum LVP products, according to the research firm’s analysis.
Baxter has now updated its full-year 2025 guidance, projecting overall operational sales growth of 3-4% and earnings per share of $2.42-$2.52, down from its previous forecast of 4-5% growth and EPS of $2.47-$2.55.
In other recent news, Baxter International announced a significant change in leadership with the appointment of Andrew Hider as its new CEO, effective no later than September 2025. This decision concludes a five-month period during which Board Chairman Brent Shafer served as interim CEO. In response to this announcement, Goldman Sachs reiterated its Conviction Buy rating with a $37.00 price target, while Citi and BofA Securities maintained their Neutral ratings, with price targets of $34.00 and $40.00, respectively. Additionally, Baxter International has secured a $2.2 billion credit agreement, enhancing its borrowing capacity and replacing a previous €200 million credit facility. This amended agreement, effective June 11, 2025, allows Baxter and its affiliates to access funds in multiple currencies and extends the maturity date. UBS also maintained its Neutral rating and $35.00 price target, noting Baxter’s continued momentum with products like Novum IQ and Progressa+, which support its mid-single-digit sales growth trajectory. These developments mark a period of strategic adjustments and financial strengthening for Baxter International.
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