Key insights
- Evercore ISI initiated Becton Dickinson (BDX) with an Outperform rating and a $180 price target, viewing the current fiscal year as a transition. Despite reported low single-digit growth, the firm estimates underlying mid-single-digit growth, driven by new opportunities like GLP-1s and pharmacy automation. The launch of the BD CentroVena One Insertion System also adds to the positive outlook, suggesting potential upside for the stock.
Investing.com - Evercore ISI reinstated coverage on Becton Dickinson & Co. (NYSE:BDX) with an Outperform rating and a price target of $180.00.
The firm resumed coverage after a year-long hiatus due to the company’s Life Sciences Diagnostics divestiture. Evercore ISI views the current fiscal year as a transition period for Becton Dickinson, with the Biosciences and Diagnostics separation and transitory headwinds masking underlying growth.
The firm said reported organic growth has trended in the low single digits but characterized this as timing-related rather than structural. Excluding one-time items, Becton Dickinson is growing at approximately mid-single digits on an underlying basis, according to the firm. Recent data shows revenue growth of 6.22% over the last twelve months, with the company maintaining a market cap of $42.51 billion.
Evercore ISI said the company’s assumptions regarding headwinds from Alaris, vaccines, and China volume-based procurement are reasonable. The firm estimates that approximately 90% of Becton Dickinson’s China revenues will have undergone volume-based procurement by the end of fiscal 2026, and CDC data supports a 25% decline in vaccines for fiscal 2026.
The firm identified six growth drivers that account for approximately 25% of revenues and could grow at 9% to 10% going forward, contributing around 250 basis points to overall growth. These opportunities include GLP-1s and biologics, pharmacy automation, peripheral products, hernia, urinary incontinence, and advanced patient monitoring. For deeper insights, BDX is among the 1,400+ US stocks covered by comprehensive Pro Research Reports on InvestingPro, transforming complex data into actionable intelligence for investors.
In other recent news, BD has announced the commercial launch of the BD CentroVena One Insertion System, which is described as the first all-in-one central venous catheter insertion device available in the market. This new system aims to simplify central line placement procedures performed frequently in the U.S. Additionally, BD declared a quarterly dividend of $1.05 per share, with an indicated annual dividend rate of $4.20 per share. The dividend is set to be payable on June 30, 2026, to shareholders of record as of June 9, 2026.
BD also received CE Mark approval for its Liverty TIPS Stent Graft, allowing for its commercialization across the European Union. The device is designed for treating complications from portal hypertension in patients with cirrhosis. Meanwhile, Argus has lowered its price target for BD to $180 from $230, citing market turbulence, although it maintains a Buy rating. Argus expressed continued support for BD’s strategy of focusing on growth opportunities in the Medical and Interventional segments. Lastly, Raymond James noted that medical technology pricing has remained largely flat in 2025, following a brief positive trend in previous years.
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