Becton Dickinson (BDX) PT Lowered to $260 at Cowen on Guidance Concerns

Cowen analyst Joshua Jennings lowered the price target on Becton Dickinson (NYSE: BDX) to $260.00 (from $293.00) on the belief that the company will offer conservative F21 guidance that will lower Street numbers and the return to 5% organic revenue growth and double-digit earnings growth will take some time.

The analyst maintained a Market Perform rating, stating "Management’s intraquarter public commentary suggested that Street estimates \were too aggressive for the Veritor rapid SARS-CoV-2 antigen test. When combined with underlying uncertainty surrounding the new Alaris FDA remediation and 510K filing timeline, these issues fueled concerns that the core business’ recovery trajectory may not be as robust as other large Med Tech peers. The bull camp sees the core business returning to steady predictable 5%+ organic revenue growth and double-digit EPS performances. The bull camp also believes the F21 Street estimate call outcomes from management’s desire to set a lower bar considering COVID-19 impacts could linger in 1H’F21 and the sellside has displayed over exuberance toward the Veritor rapid antigen test."

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