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On Thursday, Becton Dickinson (NYSE:BDX) shares faced a revision in their market outlook as Citi analysts adjusted the company’s stock rating and price target. The healthcare company’s stock, currently trading at $173.14 and down over 23% year-to-date, was downgraded from Buy to Neutral, and its price target was reduced to $185 from $217. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.
Citi analysts cited the complexity and challenge in predicting the various factors affecting Becton Dickinson’s performance as the primary reason for the downgrade. This sentiment is reflected in recent analyst activity, with 11 analysts revising their earnings expectations downward. The new price target is based on a 12-14 times multiple on the projected earnings per share (EPS) for the calendar year 2026, which translates to an EPS range of $178 to $208.
The downgrade comes amidst ongoing developments within Becton Dickinson. The company is in the process of separating its Biosciences unit, a move that is anticipated to be formally announced in the coming summer. According to the analysts, this strategic action is proceeding as planned and could potentially influence the company’s future financial landscape.
The revised price target of $185 reflects the analysts’ recalibrated expectations for the stock, taking into account the current challenges and the potential outcomes of the ongoing corporate changes. Becton Dickinson’s stock performance will continue to be monitored by investors as the company navigates through these transitions and strives to achieve its projected financial targets.
In other recent news, Becton Dickinson reported second-quarter revenues of $5.27 billion, which fell short of the $5.35 billion consensus estimate. The company’s earnings per share (EPS) of $3.35, however, exceeded the consensus estimate of $3.28. Despite the earnings beat, Becton Dickinson revised its full-year 2025 guidance, lowering its organic sales growth forecast to 3-3.5% from the previously projected 4-4.5%. The EPS guidance was also adjusted to a range of $14.06 to $14.34, down from the earlier range of $14.30 to $14.60.
In light of these developments, several analyst firms have adjusted their ratings and price targets for Becton Dickinson. Jefferies reduced its price target to $255 but maintained a Buy rating. Conversely, Raymond (NSE:RYMD) James downgraded the stock from Outperform to Market Perform, and Piper Sandler downgraded it from Overweight to Neutral, lowering the price target to $185. Goldman Sachs also downgraded Becton Dickinson from Buy to Neutral, with a new price target of $192. Stifel, while maintaining a Buy rating, decreased its price target from $280 to $224. These adjustments reflect concerns about the company’s growth trajectory, market share, and macroeconomic challenges, particularly in China and regarding tariffs.
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