On Thursday, Jefferies adjusted its outlook on Baxter International (NYSE:BAX), reducing the stock price target to $43.00 from the previous $45.00, while retaining a Hold stance on the stock.
The revision follows Baxter's first-quarter 2024 sales report, which showed a 3% growth on a constant currency basis, with revenues hitting $3.59 billion against the $3.55 billion consensus. The company's earnings per share (EPS) also exceeded expectations, coming in at $0.65 compared to the anticipated $0.61.
Baxter International has reaffirmed its full-year 2024 revenue growth forecast of approximately 2% year-over-year, which aligns with consensus estimates. The forecast has been slightly adjusted to 2-3% from the previously stated 2%, on a constant currency basis.
Furthermore, the company has nudged its EPS guidance upward to a range of $2.88 to $2.98, from the earlier projection of $2.85 to $2.95. The current consensus for EPS stands at $2.90.
Despite the price target reduction, Jefferies' stance remains unchanged due to Baxter's consistent business challenges. Still, the firm acknowledges Baxter's gradual progress in areas such as new product introductions, margin enhancements, and operational improvements.
The lowered stock price target and financial estimates reflect Jefferies' cautious but observant view of Baxter's ongoing efforts to strengthen its business.
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