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Becton Dickinson’s Strategic Spin-Off and Strong Performance Boost Buy Rating

Becton Dickinson’s Strategic Spin-Off and Strong Performance Boost Buy Rating

Analyst Travis Steed of Bank of America Securities reiterated a Buy rating on Becton Dickinson (BDXResearch Report), boosting the price target to $269.00.

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Travis Steed’s rating is based on Becton Dickinson’s strategic decision to separate its Biosciences and Diagnostic Solutions segments, potentially unlocking significant value for shareholders. The spin-off could result in a sum-of-the-parts valuation of $269 per share, suggesting substantial upside from the current price. Additionally, there is the potential for further value creation through a sale, as indicated by management.
The company has also demonstrated strong financial performance, with BDX’s first-quarter organic revenue growth exceeding expectations and an EPS beat, which contributes to a positive outlook. The management’s conservative guidance and improved execution further bolster confidence in the company’s prospects. With these factors in mind, Travis Steed reiterates a Buy rating, seeing continued value creation opportunities for BDX.

According to TipRanks, Steed is a 5-star analyst with an average return of 12.0% and a 70.10% success rate. Steed covers the Healthcare sector, focusing on stocks such as Medtronic, Becton Dickinson, and Boston Scientific.

In another report released on February 3, Wells Fargo also maintained a Buy rating on the stock with a $275.00 price target.

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