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Baxter International: Initiating with Outperform

  • Oppenheimer & Co. Inc.
  • July 1, 2020

BAX: Key Provider in Critical Fluid Manufacturing and Delivery

Oppenheimer analysts are initiating coverage of Baxter International with an Outperform rating and a $100 price target, which translates into approximately 4.2 times our fiscal year 2021 estimated sales of $12.2 billion, and roughly 30 times our fiscal year 2021 GAAP estimated earnings per share (EPS) of $3.20.


Baxter is a large cap play with a global footprint in ~100 countries and generates a compound annual growth rate of around 4-5%. Baxter's core competency is in high-volume high-quality fluid manufacturing for use in various applications such as dialysis and intravenous administration of nutrition and medication, among others.

The COVID-19 situation has introduced some uncertainty in the outlook, but also simultaneously highlighted Baxter's unique value proposition in the ICU setting. Baxter, our team contends, is a "steady Eddie" player, with room for margin expansion and incremental tuck-in M&A. Our analysts recommend this value play to long-term return-oriented investors.

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