Becton Dickinson, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegelsen from Wells Fargo maintained a Hold rating on the stock and has a $172.00 price target.
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Larry Biegelsen has given his Hold rating due to a combination of factors surrounding Becton Dickinson’s strategic moves and financial outlook. The company is undergoing a significant business combination with Waters, valued at $17.5 billion, which is expected to create a unique portfolio with new growth opportunities. However, the anticipated revenue and adjusted EBITDA for the Biosciences & Diagnostic Solutions business in 2025 are closely aligned with current estimates, suggesting limited immediate upside potential.
Additionally, while Becton Dickinson plans to allocate a significant portion of the cash distribution from the merger to share buybacks and debt repayment, the overall impact on the company’s earnings growth and operational margins remains to be fully realized. The management’s expectation of mid-single-digit revenue growth and strong earnings growth, supported by margin expansion and share buybacks, indicates a stable but not overly aggressive growth trajectory. These factors contribute to a cautious outlook, justifying the Hold rating as investors await further clarity and execution of the company’s strategic plans.
Biegelsen covers the Healthcare sector, focusing on stocks such as Medtronic, Abbott Laboratories, and Dexcom. According to TipRanks, Biegelsen has an average return of 6.6% and a 55.80% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $183.00 price target.