Piper Sandler cuts Becton Dickinson target to $260

Published 23/04/2025, 14:34
Piper Sandler cuts Becton Dickinson target to $260

On Wednesday, Piper Sandler adjusted its outlook on Becton Dickinson (NYSE:BDX) shares, reducing the price target from $280.00 to $260.00 while retaining an Overweight rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $193.03, and analysis suggests it may be undervalued at current levels. The adjustment comes amid expectations for Becton Dickinson’s second fiscal quarter, which analysts at Piper Sandler project will deliver operational gains in both revenue and earnings per share. The company has demonstrated solid performance with revenue growth of 5.89% over the last twelve months, and InvestingPro analysis reveals 10+ additional insights about BDX’s growth potential.

The firm anticipates that the medical technology company might reflect these operational improvements in its updated guidance, potentially including the effects of foreign exchange tailwinds. However, the firm also notes that tariffs pose an uncertainty that is challenging to quantify, given Becton Dickinson’s extensive global manufacturing footprint.

Despite these concerns, Piper Sandler believes that Becton Dickinson’s diversified operations, including a local manufacturing presence in China, provide a degree of insulation from such risks. This diversification is viewed as a protective factor that investors should consider, particularly given the company’s low price volatility with a beta of 0.38 and its impressive 54-year track record of consecutive dividend increases.

The analyst from Piper Sandler expressed a sentiment that the market’s current lack of enthusiasm for Becton Dickinson’s stock might actually represent an opportunity. The company’s broad-based manufacturing strategy is seen as a key advantage in navigating the complex global trade environment.

Investors and market watchers will be closely monitoring Becton Dickinson’s forthcoming financial updates to see if the company’s performance aligns with Piper Sandler’s predictions and whether the revised price target reflects the company’s resilience in the face of tariff-related challenges. For deeper insights into BDX’s valuation and growth prospects, investors can access comprehensive analysis and Fair Value estimates through InvestingPro’s detailed research reports.

In other recent news, BD (Becton, Dickinson and Company) has received FDA clearance for its Phasix™ ST Umbilical Hernia Patch, marking it as the first fully absorbable hernia patch designed for umbilical hernia repairs. This development is part of BD’s ongoing commitment to advancing medical technology and improving surgical options. The company also announced the appointment of Gregory J. Hayes to its board of directors, bringing his extensive executive experience to support BD’s strategic transformation. Another significant move by BD involves the plan to separate its Biosciences and Diagnostic Solutions business, aiming to enhance strategic focus and create shareholder value. In parallel, BD has commenced a clinical trial for its GalaFLEX LITE™ Scaffold, a device intended to improve outcomes in breast revision surgeries. Additionally, activist investor Starboard Value has reportedly acquired a stake in BD, potentially pushing for the sale of the company’s life sciences division, although neither party has publicly commented on this development. These recent activities reflect BD’s dynamic approach to innovation, governance, and strategic restructuring.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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