Baxter International (BAX): Exploring Valuation After Collaboration With Celerity Pharmaceuticals in Healthcare Expansion

Baxter International (BAX) is drawing fresh attention after announcing a collaboration with Celerity Pharmaceuticals targeting acute care generics and oncolytic products. This move is consistent with the company’s efforts to expand within the healthcare industry.

See our latest analysis for Baxter International.

Baxter’s strategic moves, such as its partnership with Celerity Pharmaceuticals, have not turned the tide for the stock so far. Momentum has remained weak, with a 1-year total shareholder return of -36.7% and the share price dropping over 22% since January. Still, these collaborations hint at the company’s long-term commitment to innovation, and investors will be watching for any signs of a turnaround.

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With the stock down sharply and analysts seeing nearly 28% upside from current levels, investors are left asking: Is Baxter undervalued at these prices, or has the market already priced in the company’s path forward?

Most Popular Narrative: 22.8% Undervalued

Baxter International's most watched valuation narrative points to a fair value that stands well above the last closing price of $22.75. With analysts projecting a higher price, attention turns to the key developments they believe could reshape the company's fortunes.

Baxter's strengthened focus on innovation, including new product launches in advanced infusion systems, AI-enabled devices, and compounding, aligns with growing demand for efficient, digitalized, and connected healthcare equipment. This positions the company to capture higher-margin revenue streams and gain market share.

Read the complete narrative.

Want to see what’s driving this valuation? The narrative hinges on bold shifts in profitability, margin expansion, and a future growth path that could surprise the market. Unpack the detailed financial projections and find out what’s fueling this premium fair value.

Result: Fair Value of $29.47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weak demand and concerns over product quality could still derail Baxter’s recovery, particularly if hospital usage patterns do not rebound soon.

Find out about the key risks to this Baxter International narrative.

Build Your Own Baxter International Narrative

If you see Baxter's story differently or believe your own research tells another tale, you can build your own perspective in just a few minutes. Do it your way.

A great starting point for your Baxter International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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