US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com-- Analysts at Stifel downgraded Baxter International Inc (NYSE:BAX) to “Hold” and cut its price target, citing ongoing operational challenges and a lack of near-term catalysts for consistent growth.
Stifel lowered PT to $25 from $36, and downgraded rating from "Buy".
Stifel analysts said that while Baxter has made positive strides through portfolio transformation efforts and efficiency measures, its disappointing second-quarter results and reduced full-year guidance have clouded its 2026 outlook.
Stifel emphasized that new CEO Andrew Hider, set to assume leadership in September, faces a range of challenges, including resolving issues with the NOVUM large volume pump, hospital IV solution conservation, and weaker-than-expected patient admissions.
These factors pressured the company’s key Infusion Therapies & Technologies unit in the second quarter, analysts said.
“We find ourselves believing that BAX is in an extended transition period, where shares could be range-bound despite the inexpensive current valuation optics,” analysts wrote.
Baxter reported second-quarter revenue of $2.81 billion, narrowly missing estimates, as gross and operating margins also came in below consensus. EPS of $0.59 missed forecasts, even with a lower tax rate benefit.
Stifel said it awaits clearer signs of strategic execution and a path to consistent 4%-5% sales growth under Hider’s leadership.