Baxter International (BAX): Valuation Update Following Legal Actions Over Novum Pump Safety Disclosures

Baxter International (BAX) is under major legal scrutiny following multiple class action lawsuits that claim the company misled investors about safety defects in its Novum IQ Large Volume Pump medical device.

See our latest analysis for Baxter International.

The legal turmoil has added to what was already a challenging year for Baxter’s shareholders. After the abrupt 22% drop when Novum LVP shipments were paused, momentum has largely faded. The company’s share price has drifted lower to $22.93, and its one-year total shareholder return is now down a substantial 35.7%. Short-term rebounds have been scant, which reinforces the sense that longer-term pressures still dominate Baxter’s story.

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With the stock trading well below analyst price targets and sentiment nearing historic lows, investors are left to wonder if this battered valuation is truly a bargain or if the market has simply adjusted for deeper challenges ahead.

Most Popular Narrative: 18% Undervalued

Baxter International's widely followed narrative pegs fair value at $28, notably above the last traded price of $22.93. This gap hints at potential upside, but also raises questions about the underlying forecasts that could justify such a premium.

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. An aging population and the rising prevalence of chronic diseases are long-term drivers of increased demand for Baxter's critical care, compounding, and advanced surgery products. These factors support sustained top-line growth as demographic shifts accelerate healthcare utilization.

Read the complete narrative.

Curious about which financial assumptions are fueling this optimism? The most dramatic expectation centers on Baxter’s future profit turnaround, far beyond its recent performance or margins. Think the secret to a sharp re-rating lies in aggressively ambitious forecasts? There are bold projections inside this narrative that may surprise the most skeptical investor.

Result: Fair Value of $28 (UNDERVALUED)

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

However, ongoing hospital IV fluid conservation and continued scrutiny over Novum IQ pump safety could stall any swift recovery in Baxter's core business momentum.

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

Build Your Own Baxter International Narrative

If you want a different perspective or trust your own research above all else, you can easily craft your own view 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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