Morgan Keegan Maintains Outperform Rating, $60 PT On BAX

Morgan Keegan is maintaining its $60 PT and Outperform rating on shares of Baxter International Inc. BAX. “Based on an April 2010 filing, we believe that the FDA PDUFA date for Baxter's subcutaneous 10% IgG is nearing,” Morgan Keegan writes. “Although we do not expect an FDA clearance to be a significant stock-moving event, it should provide some added comfort to Baxter's outlook for 6%-8% IVIG growth in 2011 given an opportunity for share gain and improved pricing. “Moreover, we view the event as a stepping-stone to a 2012 FDA clearance of HyQ (subcutaneous IgG with rHuPH20), which should be a significant new product and help drive accelerating earnings next year. With Baxter's valuation remaining attractive with a 10.9 P/E on 2012 earnings and a 8% FCF yield, we would purchase the stock at current levels.” Baxter International Inc. closed Monday at $51.71.