Palantir shares slip by 7% despite posting record revenue in third quarter
Investing.com - Stifel has reduced its price target on Baxter International (NYSE:BAX) to $22.00 from $25.00 while maintaining a Hold rating, citing ongoing business pressures and guidance cuts for the remainder of 2025. The stock is currently trading at $19.51, having fallen 21.76% year-to-date and now sits near its 52-week low. According to InvestingPro analysis, Baxter appears significantly undervalued compared to its Fair Value estimate.
The firm adjusted its 2025 estimates toward the lower end of management’s EPS guidance range following Baxter’s third-quarter earnings report. Stifel also lowered its 2026 sales growth estimate to 1.9% year-over-year, reflecting continued NOVUM/IV headwinds, and reduced its 2026 EPS projection to $2.20 from $2.63 previously. While Baxter was not profitable over the last twelve months with a diluted EPS of -$0.49, analysts predict the company will be profitable this year with an EPS forecast of $2.45 for fiscal 2025.
During the third-quarter earnings call, new CEO Andrew Hider outlined a near-term action plan focused on business stabilization, balance sheet enhancement, and operational efficiency improvement. These initiatives, including a dividend cut, may offer opportunities for Baxter to strengthen its fundamentals over time. The dividend has already seen a significant 41.38% reduction, with the current yield at 3.03%. Despite these challenges, InvestingPro data shows Baxter has maintained dividend payments for 55 consecutive years and currently holds a "GOOD" overall financial health score.
Stifel noted that recent challenges, including the NOVUM shipment hold, hospital IV fluid conservation, and premix softness, contributed to Baxter’s below-consensus third-quarter performance. The firm expects management to make concerted efforts to outperform post-earnings consensus estimates.
The research firm cautioned that issues like the NOVUM shipment hold will likely persist into 2026, creating considerable uncertainty despite the potential long-term benefits of the CEO’s turnaround strategy.
In other recent news, Baxter International Inc. released its Q3 2025 earnings report. The company reported an earnings per share (EPS) of $0.69, which exceeded the forecasted $0.60. However, Baxter’s revenue did not meet expectations, totaling $2.84 billion compared to the anticipated $2.88 billion. These financial results highlight a mixed performance for the company. Despite the earnings beat, the revenue shortfall may have implications for investor sentiment. Analyst assessments and stock evaluations often consider both earnings and revenue figures in their analyses. It is important for investors to stay informed about these developments as they assess Baxter’s financial trajectory.
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