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Baxter International Inc. (NYSE:{{7951|BABAX) stock has experienced a significant downturn, touching a 52-week low of $28.22. This latest price level reflects a stark contrast to the company's performance over the past year, with Baxter's stock witnessing a substantial 1-year change, plummeting by -33.56%. InvestingPro analysis indicates the stock is currently undervalued, with analysts setting price targets ranging from $30 to $55. The company's RSI suggests oversold conditions, while maintaining its impressive 55-year streak of consecutive dividend payments. The decline to this year's low point underscores the challenges faced by the healthcare company in a market that has been unforgiving to many of its peers as well. Investors are closely monitoring Baxter's strategic moves to navigate through the current economic headwinds and improve its market position. Despite current challenges, InvestingPro data shows analysts expect the company to return to profitability this year, with revenue growth forecast at 5%. For deeper insights and additional ProTips about BAX's potential recovery, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Baxter International reported strong financial results for the fourth quarter of 2024, exceeding analyst expectations. The company posted an adjusted earnings per share (EPS) of $0.58, surpassing the forecast of $0.52, and achieved revenue of $2.75 billion, which was higher than the anticipated $2.67 billion. Baxter's performance was bolstered by the successful launch of the Novum IQ infusion pump and a 50% growth in its infusion business. Looking ahead, Baxter has provided a positive guidance for 2025, expecting sales growth of 5-6% and adjusted EPS between $2.45 and $2.55.
In related developments, Goldman Sachs has reinstated coverage on Baxter International with a Buy rating and set a price target of $42. The firm highlighted an anticipated 12.5% compound annual growth rate in earnings per share over the next three years, driven by expected improvements in margins and cash flow. Meanwhile, UBS raised its price target for Baxter to $35 from $32.50, maintaining a Neutral rating. UBS noted Baxter's robust organic sales growth of 6% in the fourth quarter and the company's guidance that exceeds consensus expectations for 2025.
Additionally, Seaport Therapeutics announced the appointment of Robert J. Hombach as the Chair of its Audit Committee. Hombach brings extensive financial and operational experience from his previous roles at Baxter and Baxalta, which are expected to support Seaport's growth and development of neuropsychiatric medicines. These recent developments reflect ongoing strategic efforts and positive momentum for the companies involved.
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