William Blair analyst Andrew Brackmann has maintained their neutral stance on BDX stock, giving a Hold rating on July 7.
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Andrew Brackmann has given his Hold rating due to a combination of factors surrounding Becton Dickinson’s recent strategic moves. The company’s decision to divest its Biosciences and Diagnostics Solutions segments through a Reverse Morris Trust transaction with Waters Corporation is seen as a positive step for long-term value creation. This transaction is expected to unlock significant value, provide cash for share repurchases and debt repayment, and allow Becton Dickinson shareholders to benefit from potential upside in the combined entity.
However, despite these favorable aspects, Brackmann maintains a cautious stance due to the complexities and risks associated with the Reverse Morris Trust structure, which could face scrutiny. Additionally, while the transaction provides a clearer path for the company’s future focus on high-growth medtech areas, it does not immediately resolve the near-term challenges affecting Becton Dickinson’s performance. Brackmann emphasizes the need for more consistent revenue growth, margin expansion, and earnings improvement before considering an upgrade in the stock’s rating.
In another report released on July 7, Citi also maintained a Hold rating on the stock with a $185.00 price target.