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Becton, Dickinson, and Company (BDX), headquartered in Franklin Lakes, New Jersey, is a medical technology company that develops, manufactures, and sells medical devices, medical supplies, laboratory equipment, and diagnostic products. Valued at $68.2 billion by market cap, the company operates in three segments: BD Medical, BD Life Sciences, and BD Interventional.
Shares of this medical instrument maker have struggled to keep up with the broader market over the past year. BDX stock has plunged 13.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.3%. In 2024, BDX stock is down 3.3%, while the SPX is up 17.6% on a YTD basis.
Narrowing the focus, BDX has also lagged behind the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 11.8% over the past year. Moreover, the ETF’s 6.7% gains on a YTD basis outshine the stock’s single-digit losses over the same time frame.
On Aug. 1, the stock dropped 2.1% after announcing its Q3 earnings report. It reported an adjusted EPS of $3.50 and total revenue of $14.7 billion, up 18.2% and 3.2% year over year, respectively. The company also updated GAAP revenue growth guidance to approximately 3.7%, with organic revenue growth expected between 5% and 5.3%.
For the current fiscal year, ending in September, analysts expect Becton, Dickinson, and Company’s EPS to grow 7.3% annually to $13.10 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the past four quarters. In the recent quarter, BDX surpassed the earnings consensus estimate by 5.7%.
Among the 16 analysts covering BDX stock, the overall consensus is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is slightly more bullish than three months ago, with 11 analysts rating the stock a “Strong Buy.”
On Aug. 2, Raymond James Financial, Inc. (RJF) analyst Jayson Bedford maintained a “Buy” rating on Becton Dickinson & Company and adjusted the target price from $275 to $270.
The mean price target of $275.29 represents a 16.7% premium from BDX’s current price levels. The Street-high price target of $312 suggests an upside potential of 32.3%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
