Update shared on05 Sep 2025
Fair value Decreased 1.22%Baxter International's consensus price target was slightly reduced to $29.00, as disappointing Q2 results, lowered full-year guidance, and a slower-than-expected path to sales and margin improvement undermined near-term growth confidence.
Analyst Commentary
- Disappointing Q2 performance and reduced full-year guidance undermined near-term confidence in Baxter's growth trajectory.
- Slower-than-anticipated path to consistent mid-single-digit sales growth and meaningful margin expansion.
- Deferred recovery in the IV therapies business amid ongoing operational headwinds and business disruptions.
- Margin expansion is now expected to be more gradual due to persistent inflationary pressures and a slower improvement in business mix.
- Prolonged timeline for navigating business challenges and achieving operational improvements as the new CEO assumes leadership.
What's in the News
- Stifel downgraded Baxter to Hold from Buy, reducing the price target to $25 from $36, citing disappointing Q2 performance, a reduction in full-year guidance, and a cautious 2026 outlook; the firm expects a slow path to consistent growth and margin expansion as new CEO Andrew Hider takes over in September (Periodicals).
- Baxter announced the appointment of Andrew Hider as CEO, highlighting his track record at ATS Corporation in achieving strong revenue and margin growth, portfolio optimization, and life sciences experience; Brent Shafer will transition to independent chair (Key Developments).
- Baxter launched the new Hemopatch sealing hemostat, a collagen pad designed for both open and minimally invasive surgeries, reflecting a decade-long development process in collaboration with surgeons to address real clinical needs (Key Developments).
- No shares were repurchased in Q2 2025, but Baxter has completed the previously announced buyback program, totaling 19.57% of shares for $7.22 billion since 2012 (Key Developments).
- Baxter provided Q3 and 2025 full-year guidance, projecting 6-7% reported sales growth and 3-4% operational growth; in July, the company also announced a strategic partnership with Vizient to strengthen U.S. supply assurance for IV fluids following prior supply disruptions (Key Developments).
Valuation Changes
Summary of Valuation Changes for Baxter International
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $29.36 to $29.00.
- The Future P/E for Baxter International has fallen from 23.45x to 21.60x.
- The Net Profit Margin for Baxter International has risen from 7.02% to 7.53%.
Disclaimer
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