Zacks Investment Research Upgrades Baxter International Inc. (BAX) to Buy
Baxter International Inc. (NYSE:BAX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday. The brokerage currently has a $53.00 price target on the stock. Zacks Investment Research’s target price suggests a potential upside of 12.81% from the company’s current price.
According to Zacks, “We believe Baxter is gaining prominence with a series of strategic developments that include the recent launch of NUMETA G13E in Europe for vulnerable preterm newborns, the strategic tie-up with Satellite Healthcare and the recognition of its Sigma spectrum infusion system as a highly efficient infusion pump in drug library compliance (analysis by KLAS research firm). We believe the launch of AMIA APD system with the SHARESOURCE Connectivity in Canada will expand the company’s international footprint. However, intense competition in the medical products segment and lackluster hospital spending are major concerns. Meanwhile, a glimpse on the estimate trends reveals that estimates are stable for the current year, before the company’s earnings release of third-quarter of fiscal 2016.”
Several other analysts have also recently commented on BAX. Goldman Sachs Group Inc. reiterated a “buy” rating on shares of Baxter International in a report on Wednesday, July 6th. JPMorgan Chase & Co. restated a “hold” rating and set a $45.00 price target on shares of Baxter International in a report on Friday, July 8th. Royal Bank Of Canada increased their price target on Baxter International from $47.00 to $50.00 and gave the stock a “sector perform” rating in a report on Wednesday, July 27th. RBC Capital Markets restated a “hold” rating and set a $50.00 price target (up from $47.00) on shares of Baxter International in a report on Wednesday, July 27th. Finally, Argus restated a “hold” rating on shares of Baxter International in a report on Monday, August 15th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $48.17.
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Baxter International (NYSE:BAX) traded up 1.06% during mid-day trading on Thursday, hitting $47.48. 876,907 shares of the stock were exchanged. Baxter International has a 1-year low of $32.96 and a 1-year high of $49.49. The stock has a 50 day moving average price of $47.02 and a 200 day moving average price of $45.51. The company has a market capitalization of $25.82 billion, a PE ratio of 5.45 and a beta of 0.71.
Baxter International (NYSE:BAX) last announced its earnings results on Tuesday, July 26th. The company reported $0.46 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.06. Baxter International had a return on equity of 10.70% and a net margin of 47.74%. The business had revenue of $2.60 billion for the quarter, compared to analysts’ expectations of $2.51 billion. During the same period in the prior year, the business posted $1.00 earnings per share. The firm’s revenue was up 4.4% on a year-over-year basis. On average, equities analysts anticipate that Baxter International will post $1.73 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Friday, September 2nd were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 1.11%. The ex-dividend date of this dividend was Wednesday, August 31st. Baxter International’s dividend payout ratio is presently 5.99%.
Several large investors have recently made changes to their positions in BAX. Trust Department MB Financial Bank N A raised its stake in shares of Baxter International by 4.1% in the second quarter. Trust Department MB Financial Bank N A now owns 1,746 shares of the company’s stock valued at $122,000 after buying an additional 68 shares in the last quarter. Balentine LLC raised its stake in shares of Baxter International by 12.6% in the second quarter. Balentine LLC now owns 3,176 shares of the company’s stock valued at $144,000 after buying an additional 356 shares in the last quarter. Checchi Capital Advisers LLC raised its stake in shares of Baxter International by 1.9% in the second quarter. Checchi Capital Advisers LLC now owns 4,333 shares of the company’s stock valued at $196,000 after buying an additional 81 shares in the last quarter. Cobblestone Capital Advisors LLC NY acquired a new stake in shares of Baxter International during the second quarter valued at about $203,000. Finally, Pioneer Trust Bank N A OR acquired a new stake in shares of Baxter International during the second quarter valued at about $203,000. 84.81% of the stock is owned by hedge funds and other institutional investors.
Baxter International Company Profile
Baxter International Inc, through its subsidiaries, provides a portfolio of essential renal and hospital products, including home, acute and in-center dialysis; sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition; biosurgery products and anesthetics, and pharmacy automation, software and services.
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