Goldman Sachs Suggests Buying Call Spreads on BAX

Goldman Sachs is out with a research note this morning, where it suggests traders buy call spreads on Baxter International BAX prior to its 2011 guidance release. Goldman Sachs Medical Technology analyst, David Roman, sees CL-Buy rated BAX as his top pick in the sector with 20% upside to $61 price target. This quarter's earnings report (27-Jan) should be particularly important for BAX as the company will be giving 2011 guidance and there is controversy among investors regarding the health of the worldwide intravenous immune globulin (IVIG) and plasma markets. The analysts suggest buying the May $52.50/57.50 call spread for $1.31. Baxter International Inc. through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.