Investing.com - RBC Capital has lowered its price target on Becton Dickinson (NYSE:BDX) to $172.00 from $210.00 while maintaining a Sector Perform rating on the medical technology company’s stock. The stock is currently trading at $167, near its 52-week low of $162.29, though InvestingPro data indicates BDX appears undervalued based on its Fair Value assessment.
The price target adjustment follows Becton Dickinson’s fiscal first quarter 2026 results, which exceeded consensus expectations with ex-foreign exchange revenue growth of 0.4% year-over-year, outperforming the company’s guidance of low-single-digit declines.
Becton Dickinson also reported earnings per share that beat analyst estimates by $0.10 and announced the completion of its Lifesciences business separation. The company’s diluted EPS stands at $6.12 for the last twelve months, with analysts forecasting EPS of $12.38 for fiscal 2026.
The company maintained its full-year guidance for the "New BD" with low-single-digit year-over-year ex-foreign exchange growth and earnings per share of $12.35-12.65, which RBC noted remains unchanged operationally. With a market capitalization of $47.37 billion, BDX offers a dividend yield of 2.03% and has maintained dividend payments for 56 consecutive years, according to InvestingPro data.
RBC Capital cited the need for Becton Dickinson to prove its growth recovery back to mid-single digits as a key factor in maintaining its Sector Perform rating, while noting that approximately 90% of the company’s business is currently delivering mid-single-digit growth. The company currently trades at a P/E ratio of 34.29, which aligns with InvestingPro’s assessment that BDX is "trading at a high earnings multiple." Investors seeking deeper insights can access the comprehensive Pro Research Report available for BDX, one of 1,400+ US equities covered with detailed analysis on the platform.
In other recent news, Becton Dickinson reported its fiscal first-quarter results, surpassing expectations with a revenue of $5.3 billion, which was higher than the anticipated $5.15 billion. The company’s earnings per share also exceeded forecasts, coming in at $2.91 compared to the expected $2.81. Despite these positive results, analysts expressed concerns, leading to adjustments in stock price targets. Piper Sandler lowered its price target for Becton Dickinson to $170, citing growth concerns, while maintaining a Neutral rating. Jefferies also reduced its price target to $190 from $220 but retained a Buy rating. Additionally, RBC Capital maintained a Sector Perform rating with a $210 price target, noting that the company exceeded its own guidance for revenue growth. These developments reflect a mix of positive earnings performance and cautious analyst outlooks on the company’s future prospects.
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