Goldman Sachs Starts Baxter International (BAX) at Neutral

Goldman Sachs analyst David Roman initiates coverage on Baxter International (NYSE: BAX) with a Neutral rating and a price target of $36.00.

The analyst comments: "Our thesis on the stock reflects confidence that operating performance should improve over the next several quarters, as organic growth accelerates in 2H 2024 and operating margins show progressive year-over-year increases. A constructive view on underlying operating fundamentals is balanced against a high leverage ratio (3.8x net debt/LTM EBITDA as of Q1 2024) that limits financial flexibility, uncertainty about the direction of the Kidney Care business (whether management will pursue a spin or sale based on prior disclosures), and a view that most of the future margin expansion will need to come from gross margins (vs. the 2016-2019 period of improvement that resulted largely from discretionary expense management), which tends to take longer to materialize."

For an analyst ratings summary and ratings history on Baxter International click here. For more ratings news on Baxter International click here.

Shares of Baxter International closed at $33.19 yesterday.

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