Goldman Sachs reiterates Buy on Xiaomi stock as 17 Pro Max drives sales
Investing.com -- RBC Capital Markets initiated coverage of Becton, Dickinson and Company with a Sector Perform rating and a $211 price target, saying the medical device maker’s growth acceleration is more likely to come after 2026.
BD is preparing to spin off and merge its Biosciences and Diagnostics businesses with Waters Corp in a $17.5 billion deal expected to close in the first quarter of 2026.
RBC said the transaction will leave behind a “New BD” focused on medical technology with a strong consumables base, exposure to markets growing about 5% annually, and potential for margin expansion.
“New BD will be a scaled, pureplay MedTech leader driving MSD growth with increased investments in high-growth markets and margin expansion aided by BD Excellence, driving levered earnings, FCF, and positive shareholder returns,” analyst said.
The bank said BD’s strategy could unlock value through $345 million in synergies by year five, a $4 billion cash distribution, and a bigger focus on buybacks and debt reduction.
Still, it noted that the company’s initial fiscal 2026 guidance points to just 3% to 3.5% organic growth and flat margins, limiting earnings upside until fiscal 2027.
RBC said the company could deliver high single-digit earnings growth beyond 2027, supported by $1 billion in annual R&D spending on areas such as biologic drug delivery, connected care, and automation.
BD shares are down 2% trading at $180. RBC’s $211 target implies about 17% upside.