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Investing.com - TD Cowen has reiterated its Hold rating on Becton Dickinson (NYSE:BDX) with a price target of $183.00 following the company’s announcement of a strategic realignment plan. The company, currently trading at $177.48, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $172 to $320.55.
The medical technology company revealed its intention to separate its Biosciences & Diagnostics Solutions division through a combination with Waters Corporation (NYSE:WAT).
According to TD Cowen, this strategic move will accelerate Becton Dickinson’s transformation into a focused, innovation-driven medical technology pure play with enhanced capital flexibility and stronger growth trajectory.
The company indicated that the transaction is expected to unlock approximately $8 billion in value for shareholders.
The strategic separation represents a significant step in Becton Dickinson’s ongoing corporate restructuring efforts as it works to streamline operations and focus on core medical technology businesses.
In other recent news, Waters Corporation announced a significant $17.5 billion merger with Becton Dickinson’s Biosciences & Diagnostic Solutions business. This merger is structured as a Reverse Morris Trust transaction, with BD set to receive approximately $4 billion in cash before completion. The merger is expected to bring about $345 million in annualized EBITDA synergies by 2030, and the deal is projected to be accretive to Waters’ adjusted earnings per share in the first year. Meanwhile, Becton Dickinson has appointed Bilal Muhsin to lead its new Connected Care segment, aimed at enhancing patient care efficiency with advanced analytics and AI solutions. Analysts at Stifel have maintained a Buy rating on Becton Dickinson, expressing confidence in the company’s future prospects despite a mixed fiscal second quarter. Barclays (LON:BARC), however, has lowered its price target for Becton Dickinson to $241, citing a slower pace of organic growth in the coming years. The planned separation of BD’s Biosciences & Diagnostic Solutions unit remains on track, as confirmed by CEO Tom Polen. These developments reflect ongoing strategic changes and analyst evaluations affecting both companies.
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