Raymond James Downgrades Becton Dickinson (BDX) to Market Perform, 'Lower Growth Warrants Lower Rating'

Raymond James analyst Jayson Bedford downgraded Becton Dickinson (NYSE: BDX) from Outperform to Market Perform.

The analyst comments "We are downgrading BDX to Market Perform (from Outperform). Our concern is growth. We clearly mismodeled the organic growth profile of the business over the last few quarters and are left wondering what can turn this growth trend around. While BDX spends a respectable amount on R&D (~6% of sales), we struggle to identify needle-moving innovations that will re-accelerate growth and our sense is that the core business is ceding modest share. We had viewed BDX as a 5-6% revenue grower capable of generating 8-10% EPS growth, which is the growth profile it enjoyed in FY23/24, but we now think the growth profile is likely in the 3-5% range on revenue, and 6-8% on EPS. The impact of tariffs, which is largely in-line with our thinking, will likely stifle EPS growth further in FY26. We fully acknowledge that sentiment is depressed, and a worst-case tariff scenario is likely baked into our estimates, but we have a tough time identifying what will change sentiment, which drives our rating change."

For an analyst ratings summary and ratings history on Becton Dickinson click here. For more ratings news on Becton Dickinson click here.

Shares of Becton Dickinson closed at $169.54 yesterday.

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