Baxter: Stifel downgrades to ’Hold’, cuts PT on disappointing Q2 results

Published 04/08/2025, 06:48
© Reuters

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.

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