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On Friday, Jefferies analyst Matthew Taylor revised the price target for Becton Dickinson (NYSE:BDX) shares, reducing it to $255 from the previous $305, while still recommending a Buy rating for the stock. The revision comes as the stock has experienced a significant 17% decline over the past week, pushing it near its 52-week low of $169.52. According to InvestingPro data, technical indicators suggest the stock is currently in oversold territory. The adjustment comes after Becton Dickinson disclosed its financial results for the second fiscal quarter, reporting revenues of $5.27 billion, which represents a 0.9% organic increase. This figure fell slightly short of the consensus estimate of $5.35 billion. The company’s earnings per share (EPS) for the quarter was $3.35, showing a 5.5% increase and exceeding the consensus estimate of $3.28, which was set for a 3.3% rise. Despite the mixed results, InvestingPro analysis shows BDX maintains a strong financial health score of "GOOD" and has an impressive track record of raising dividends for 54 consecutive years.
Becton Dickinson also provided updated guidance for fiscal year 2025, lowering its organic sales growth forecast to a range of 3-3.5%, down from the previously projected 4-4.5%. In addition, the company has adjusted its EPS guidance to a range of $14.06 to $14.34, reflecting an 8% increase. This updated EPS guidance is a decrease from the earlier range of $14.30 to $14.60 and falls below the consensus estimate of $14.43. The revised figures account for a 25-cent impact from tariffs and a 5-cent impact from foreign exchange fluctuations.
The firm’s outlook acknowledges the potential for tariffs to continue affecting the company’s financial performance into 2026. Taylor’s report highlighted the challenging quarter experienced by Becton Dickinson and the uncertainty surrounding tariffs as the primary reasons for the lowered price target and adjusted financial projections. Despite these challenges, the analyst maintains a positive outlook on the company’s stock with the continued Buy rating. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Becton Dickinson has experienced a series of downgrades from major analyst firms. The company’s second-quarter fiscal year 2025 performance showed sales of $5.27 billion, falling short of the consensus estimate of $5.35 billion. Despite missing revenue expectations, the company reported an earnings per share (EPS) of $3.35, surpassing analyst predictions. Raymond (NSE:RYMD) James, Piper Sandler, Goldman Sachs, and BofA Securities have all downgraded Becton Dickinson’s stock rating, citing concerns over growth trajectory and execution. Raymond James revised its growth expectations for the company, estimating a 3-5% growth in revenue and a 6-8% increase in EPS. Piper Sandler and Goldman Sachs also adjusted their price targets to $185.00 and $192.00, respectively, expressing skepticism about the company’s short-term performance. Stifel maintained a Buy rating but reduced its price target to $224.00, acknowledging macroeconomic challenges impacting growth. BofA Securities cut its price target to $190.00, highlighting Becton Dickinson’s failure to meet its original growth guidance.
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