Analyst Travis Steed from Bank of America Securities maintained a Buy rating on Becton Dickinson (BDX – Research Report) and keeping the price target at $269.00.
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Travis Steed has given his Buy rating due to a combination of factors that suggest potential growth and value creation for Becton Dickinson. Despite a recent dip in stock price following the announcement of the Life Sciences separation and FQ1 results, Steed believes the market has undervalued the company’s remaining operations. The current stock price reflects a lower multiple than its peers, which presents an opportunity for appreciation if Becton Dickinson can achieve its growth targets in the coming years.
Furthermore, Steed highlights multiple strategic options available to Becton Dickinson, including a Reverse Morris Trust, which could enhance shareholder value significantly. This transaction type, though complex, offers potential tax advantages and could lead to higher valuation multiples by reducing stand-up costs and creating synergies. These factors contribute to a positive outlook, making Becton Dickinson an attractive investment at its current valuation.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BDX in relation to earlier this year.