Baxter cut to Hold at Argus on dividend cut

As previously reported, Argus downgraded Baxter (BAX) to Hold from Buy. The company announced a significant dividend cut to $0.04 per share, from $0.68, aimed at improving cash flow by around $300M, the analyst tells investors in a research note. Combined with a sustained weak near-term outlook due to its pause in shipments of its Novum infusion pumps and a cautious outlook for its IV fluid solutions business, the firm anticipates that Baxter’s recovery under new CEO Andrew Hider will take longer than previously expected, Argus added.