[Benzinga] Becton Dickinson and Co (NYSE:BDX)(TREND ANALYSIS) Argus believes that shares of Becton Dickinson and Co (NYSE: BDX) are favorably valued as it reaffirmed its Buy rating and $185 target price.
Analyst David Toung welcomed the company’s sale of Respiratory Solutions and spinal product businesses, a move that will enable Becton Dickinson to focus on faster growing operations.
Toung is also impressed with the company’s efforts to boost revenue synergies from the CareFusion acquisition, amid strong growth from core businesses. Further, the analyst expects EPS benefit from improving margins, while new product launches should enhance future revenues.
When Becton Dickinson reports its fourth quarter results in early November, the analyst will look for an update on the company’s international sales and contributions from the CareFusion acquisition.
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Becton Dickinson and Co (NYSE:BDX) stock is currently trading 4.94% below its 52-week-high, 33.43% above its 52-week-low. The 1-year stock price history is in the range of $129.5 – $181.76. Becton Dickinson and Co (BDX) has a price to earnings ratio of 32.98 versus Healthcare sector average of 40.79. BDX stock price has outperformed the S&P 500 by 7.1%. The Medical Products company is currently valued at $36.79 billion, and its share price closed the last trading session at $172.79. The stock has a 50-day moving average of $176.16 and a 200-day moving average of $170.18.
Becton Dickinson and Co (BDX) current short interest stands at 3.56 million shares. It has increased by 11% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 0.87 million shares, the number of days required to cover the short positions stand at 4.1 days.
BDX is forecasted to report earnings per share of $2.09 and a revenue of $3.25 billion for the 4th Quarter of the fiscal year 2016. Becton Dickinson and Co (BDX) expects to post results on November 03. The Medical Products company announced last quarter earnings per share of $2.35 against a consensus Street estimate of $2.19, beating the average estimate by $0.16. The company posted a revenue of $3.2 billion compared to an estimation of $3.2 billion.
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There are currently seventeen analysts that cover Becton Dickinson and Co stock. Of those seventeen, ten have a Buy rating, six have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $183.13.
A recent analyst activity consisted of Citi downgrading their Neutral rating to Sell on September 23. Citi set their price target at $165. This corresponds to a 4.51% downside from the last closing price. On the date of report, the stock closed at $179.5.
Deutsche Bank upgraded their Hold rating to Buy on February 11. On the date of report, the stock closed at $133.71.
Another research firm was Citigroup who reiterated their Neutral stance on February 4. Citigroup decreased price target from $153 to $146. This translates to a 15.5% downside from the last closing price. On the date of report, the stock closed at $136.26.
Becton, Dickinson and Company is a global medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public.