Citi Projects 16% Upside For Becton Dickinson In Upgrade

Medical supplier Becton Dickinson and Co BDX is likely to outperform its own expectations, as well as the Street's, according to Citi.

The Analyst

Analyst Amit Hazan upgraded Becton Dickinson from Neutral to Buy and increased the price target from $237 to $251, suggesting 16-percent upside.

The Thesis

A strong setup for upside to the 2018 guidance and Street estimates appears to be in place, starting with the fiscal second quarter, mainly due to the Becton Dickinson side of the business, Hazan said in a Tuesday note. (See the analyst's track record here.) 

The company recently completed its acquisition of C.R. Bard; the combined company has annualized revenues of $16 billion.

Bard's growth is a key uncertainty, Hazan said. 

Citi's new drug-coated balloon, or CDB, survey indicated that market growth coupled with new indications can help maintain DCBs as at least one important Bard growth driver.

The Price Action

Becton Dickinson shares have gained over 18 percent over the past year through Monday.

At last check Tuesday, the shares were rallying 2.73 percent to $223.33. 

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