Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Friday, Becton Dickinson and Company (NYSE:BDX) experienced a change in its stock rating as Goldman Sachs analysts downgraded the company from "Buy" to "Neutral." The firm also adjusted the price target for Becton Dickinson shares to $192.00, a significant decrease from the previous target of $256.00. According to InvestingPro analysis, BDX is currently trading near its 52-week low of $169.52, with technical indicators suggesting oversold conditions.
The downgrade came after a period of underperformance for Becton Dickinson stock compared to the broader market. Since being added to Goldman Sachs’ Buy list on May 30, 2024, the company’s shares have seen a return of negative 25%, while the S&P 500 index gained 6% and the firm’s large cap Medical (TASE:BLWV) Technology (MedTech) coverage increased by 5%.
Goldman Sachs attributed the downgrade to a recalibration of organic growth estimates for Becton Dickinson. According to their analysis, the forward-looking organic revenue growth forecast for the company has been adjusted from approximately 5-6% two years ago to about 3-4% under the current operating conditions.
The analysts at Goldman Sachs believe that this revised growth outlook places Becton Dickinson at the lower end of the MedTech sector. They suggest that based on the relationship between organic growth and valuation, the market is likely to assign a lower valuation to Becton Dickinson shares. The firm’s commentary indicates a cautious stance on the stock’s future performance, given the updated growth and valuation expectations.
In other recent news, Becton Dickinson reported its second-quarter fiscal year 2025 earnings, revealing a mixed performance. The company achieved an earnings per share (EPS) of $3.35, surpassing analyst forecasts of $3.28, driven by improved margins. However, revenue fell short of expectations, reaching $5.27 billion against the anticipated $5.35 billion, with challenges in the Chinese market and reduced research funding being significant contributors. The Life Sciences and Interventional segments were primarily responsible for the revenue shortfall. Becton Dickinson has revised its full-year organic growth guidance downward to 3-3.5% from the previous 4-4.5% due to ongoing macroeconomic challenges. Analysts at Stifel maintained a Buy rating but lowered their price target to $224, while BofA Securities downgraded the stock from Buy to Neutral, reducing the price target to $190. Despite these challenges, Becton Dickinson plans to support its performance through new product launches and investments in U.S. manufacturing. The company is also progressing with the planned separation of its Biosciences and Diagnostics business, aiming to enhance shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.