Goldman Sachs Says Buy Baxter International (BAX) On Aetna-Related Weakness

Goldman Sachs reiterated their Conviction Buy list rating and $67 price target on Baxter International (NYSE: BAX) Thursday, saying weakness amid concerns that Aetna (NYSE: AET) awarded competitor Talecris "preferred" status provides a buying opportunity.

The analyst comments, "The bottom line is that this is a new concern, but the news is not new. The policy with Aetna has been in place since the beginning of this year, and Baxter has not seen any patients being forced to convert – 1H2011 US IVIG revenue growth for Baxter is 21% (the result of share gains and product shortages). In addition, the policy only covers those members whose IVIG benefit are reimbursed under Aetna's pharmacy benefit plans (<10% of patients)."

For more ratings news on Baxter International click here and for the rating history of Baxter International click here.

Shares of Baxter International closed at $54.40 yesterday.

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