William Blair analyst Andrew Brackmann has maintained their neutral stance on BDX stock, giving a Hold rating yesterday.
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Andrew Brackmann has given his Hold rating due to a combination of factors surrounding Becton Dickinson’s recent performance and strategic moves. The company reported fiscal third-quarter results that aligned with revenue expectations and exceeded profit forecasts, with an 8% beat on the bottom line. Organic growth stood at 3%, driven by strong performances in BD Medical and BD Interventional, which helped counterbalance the weaker results in BD Life Sciences.
Despite these positive aspects, the announcement of the sale of the Biosciences and Diagnostics Solutions businesses to Waters through a reverse Morris trust introduces some uncertainty. While the company’s adjusted gross and operating margins surpassed consensus estimates, leading to a higher-than-expected EPS, the strategic shift and its implications on future growth metrics warrant a cautious approach. As such, Brackmann’s Hold rating reflects a balanced view of the company’s current strengths and the potential risks associated with its ongoing restructuring.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $183.00 price target.