Courtesy of Benzinga.
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