Deutsche Bank Comments on Baxter International's 2011 Guidance (BAX)

Deutsche Bank is out with its report today on Baxter Intl. BAX, commenting on BAX's 2011 guidance. In a note to clients, Deutsche Bank writes, "BAX guided to 2-3% constant currency (DB at 2.5%), ex- divestitures and FX its 4%-5%. However, EPS is below at $4.15-$4.25 (up 4%-7%) v FC at $4.23 (DB $4.25). 1Q11: Sales guidance of 2%-3% ex-FX (DB at 1.5%), but EPS guidance of $0.92-$0.94 is below DB $0.98 and FC $0.97. 4Q10 in line, but 2011 guidance is disappointing and the stock will likely trade lower unless management can convince people on the call that the guidance is conservative (seems so to us given 4Q Biosci sales results and stock buy-back announced in Dec). We would be buyers on weakness. We rate BAX Buy. Deutsche Bank has a $60 price target on BAX. BAX is trading at $50.05, down 1.67% from Wednesday's close.