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KeyBanc Initiates Becton, Dickinson And Co. With Bullish Stance

Courtesy of Benzinga.

KeyBanc Initiates Becton, Dickinson And Co. With Bullish Stance

Becton Dickinson and Co (NYSE: BDX) was initiated with a top-notch rating by KeyBanc Capital Markets Thursday. 

The Analyst

KeyBanc analyst Matthew Mishan initiated coverage on Becton Dickinson with an Overweight and $260 price target.

The Thesis

“We believe [the company] is positioned to win long-term, as it is playing an integral role in global health care systems leveraging its scale in developed and emerging markets to provide increasing value to customers over time,” Mishan said in a note. (See the analyst’s track record here.) 

Mishan sees the acquisition of C R Bard Inc (NYSE: BCR) as an opportunity to increase Becton Dickinson’s scope, adding more clinically complex medical devices and a defined channel into the homecare segment. 

CR Bard’s 5-7-percent organic revenue growth profile is accretive to Becton Dickinson’s 4-5-percent growth, the analyst said. The momentum is sustainable, given a pipeline of new product, indications and market opportunities — and potential revenue synergies, he said. 

“The combined entity generates sufficient FCF [initially $3B annualized] to delever over the next 3 years, while still comfortably growing its dividend.” 

KeyBanc’s earnings per share estimates for the combined company are: $10.77 in 2018, $12.49 in 2019 and $13.71 in 2020.

The Price Action

Becton Dickinson shares have gained about 34 percent over the past year.

Related Links:

Benzinga’s Weekend M&A Chatter

Becton Dickinson Shares Favorably Valued As It Works To Boost Earnings

Photo courtesy of Becton, Dickinson And Co. 

Latest Ratings for BDX

Date Firm Action From To
Jan 2018 KeyBanc Initiates Coverage On Overweight
Jan 2018 Evercore ISI Group Initiates Coverage On Outperform
Nov 2017 Morgan Stanley Maintains Equal-Weight

View More Analyst Ratings for BDX


View the Latest Analyst Ratings

Posted-In: homecare KeyBanc Capital MarketsAnalyst Color Health Care Price Target Initiation Analyst Ratings General Best of Benzinga


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