Balanced Risk Profile and Execution Uncertainty Justify Hold Rating on Baxter Post S&P Outlook Downgrade

In a report released yesterday, Travis Steed from Bank of America Securities maintained a Hold rating on Baxter International, with a price target of $24.00.

Travis Steed has given his Hold rating due to a combination of factors related to Baxter’s credit profile and execution trajectory. Following S&P’s shift in outlook from Stable to Negative, he notes that the company must avoid further guidance cuts and show improving operational delivery before a more constructive view is warranted.

Steed highlights that S&P’s base case already embeds modest leverage improvement and only gradual recovery in growth, margins, and cash generation, with free cash flow metrics still lagging BBB- peers. With key inflection points not expected until 2026–2027 and meaningful execution risk remaining around cost actions and product issues such as Novum, he views the risk‑reward as balanced at current levels, supporting a Neutral stance.

In another report released today, TipRanks – PerPlexity also reiterated a Hold rating on the stock with a $17.50 price target.