Baxter (BAX) PT Lifted to $96 at Piper Jaffray on Shift to SOTP Methodology

Piper Jaffray analyst Matt Miksic raised his price target on Overweight-rated Baxter International (NYSE: BAX) to $96.00 (from $85.00) saying they expect stock performance for BAX over the next 12 months to be driven primarily by the spin-off of the company’s BioScience division and the prospect of value creation over the subsequent 12-24 months. In preparation for this period, they are shifting valuation to a ‘sum-of-parts’ approach.

Miksic comments, "While we have in the past employed a SOP valuation model for BAX and other names in our universe from time to time, it is not often when we can apply this methodology with visibility to an actual separation, as we do now with BAX. Using assumptions in line with historical norms for the company’s business lines, and taking into account the transitory headwinds in 2015, we still see significant upside for BAX from current levels."

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 $74.20 yesterday.

You May Also Be Interested In

• Uber Inc. (UBER) PT Raised to $96 at Tigress Financial Partners
• Banner Corporation (BANR) PT Lowered to $51 at Piper Sandler
• AvidBank Holdings Inc. (AVBH) PT Lowered to $23 at Piper Sandler