Deerfield-based Baxter International Inc. (BAX) is a global medical technology company with a market cap of $17.6 billion. Specializing in renal and hospital products, it provides essential medical equipment and therapies for patients worldwide across various healthcare settings.
Shares of this medical equipment company have significantly underperformed the broader market over the past 52 weeks. BAX has declined 19% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.9%. In 2024, shares of BAX are down 10.6%, compared to SPX's 11.6% gains on a YTD basis.
Zooming in further, BAX is also lagging behind the US Medical Devices iShares ETF's (IHI) marginal gains over the past 52 weeks and a 5.2% increase on a YTD basis.
Baxter International’s relative market underperformance over the past year can be attributed to global supply-chain disruptions, diminished rental revenues, reduced hospital capital expenditures, and shortages of raw materials and components. Despite beating Q1 earnings estimates, its shares fell by 8.5% on May 2 due to ongoing struggles with its Hillrom asset and concerns about poor performance in its healthcare systems and technologies segment.
For the current fiscal year, ending in December, analysts expect BAX's EPS to grow by 11.9% to $2.91. The company's earnings surprise history is mixed. It exceeded the consensus forecast in three of the past four quarters while falling short on one other occasion.
Among the 13 analysts covering BAX stock, the consensus rating is "Moderate Buy," based on three "Strong Buy" ratings and 10 "Holds."
This configuration is slightly less bullish than a month before, with four analysts suggesting a "Strong Buy."
On April 3, Citigroup (C) analyst Joanne Wuensch assigned Baxter International stock a "Neutral" rating and raised the price target to $44. This implies an upside potential of 27.7% from current levels.
The mean price target of $44.08 represents a premium of 28% to BAX's current levels. The Street-high price target of $54, reiterated by Barclays in February, suggests that the stock could rally as much as 56.8%.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
