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Cautious Outlook for Baxter International Amid Weaker MPT Performance and Revised Growth Expectations

Cautious Outlook for Baxter International Amid Weaker MPT Performance and Revised Growth Expectations

Analyst Josh Jennings from TD Cowen maintained a Hold rating on Baxter International and decreased the price target to $26.00 from $40.00.

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Josh Jennings has given his Hold rating due to a combination of factors surrounding Baxter International’s recent financial performance and future outlook. The company’s second-quarter revenue and earnings per share (EPS) fell slightly below market expectations, with revenue from continuing operations totaling $2.81 billion compared to the consensus forecast of $2.82 billion. Although the reported and operational sales growth met the lower end of the company’s guidance, the performance of Baxter’s Medical Products & Therapies (MPT) division was notably weaker than anticipated, contributing to a downward revision of the 2025 growth outlook for this segment.
Furthermore, the company’s overall operational sales growth and EPS forecasts for 2025 have been adjusted downward, reflecting a more conservative growth trajectory. The sales figures for both the MPT and Pharmaceuticals divisions lagged behind expectations, while Healthcare Systems & Technologies (HST) managed to exceed the consensus estimate. Additionally, both gross and operating margins were below the Street’s assumptions, further influencing the Hold rating. These elements combined suggest a cautious approach to Baxter’s stock, as the company navigates these challenges and recalibrates its growth expectations.

According to TipRanks, Jennings is a 3-star analyst with an average return of 2.0% and a 49.90% success rate. Jennings covers the Healthcare sector, focusing on stocks such as TransMedics Group, Boston Scientific, and Abbott Laboratories.

In another report released on July 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $28.00 price target.

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