Baxter International (BAX): Valuation Perspective Following Class Action Lawsuits Over Novum Infusion Pumps

Baxter International (BAX) is navigating a challenging period after multiple class action lawsuits were filed. The lawsuits allege the company did not disclose widespread safety issues tied to its Novum LVP infusion pumps. Investors are now closely watching the stock.

See our latest analysis for Baxter International.

Baxter’s recent wave of class action lawsuits arrived just as the company is wrapping up several debt-related initiatives and credit agreement amendments. This may be a sign that management is also focusing on shoring up the balance sheet. Over the past year, the stock’s momentum has notably faded, with the latest share price at $19.08 and a 1-year total shareholder return of -42.1% underscoring a rocky period for investors.

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With shares now trading well below analysts’ price targets and sentiment shaken, investors face a critical question: is Baxter deeply undervalued after this turmoil, or is the market already pricing in future pain and slower growth ahead?

Most Popular Narrative: 20.7% Undervalued

Baxter International’s most followed narrative currently places fair value at $24.07 per share, noticeably above its last close of $19.08. This creates a debate over whether recent headwinds are fully factored in by the market.

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.

Eager to decode the strategic shifts underpinning this fair value? The narrative’s projections blend recovery hopes and margin revival with bold financial forecasts. For a glimpse at just how much future profit expansion is built into this price target, unlock the full narrative and see which expectations could move the stock next.

Result: Fair Value of $24.07 (UNDERVALUED)

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

However, unexpected regulatory challenges or prolonged hospital spending constraints could stall Baxter’s recovery and challenge expectations of margin improvement in the near term.

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

Build Your Own Baxter International Narrative

If you see the story differently, take a look at the numbers for yourself. Building your own perspective on Baxter’s outlook can take just minutes. Do it your way

A great starting point for your Baxter International research is our analysis highlighting 3 key rewards and 1 important warning sign 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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