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Becton Dickinson (BDX) PT, Estimates Bumped Higher at Evercore ISI

May 5, 2016 12:27 PM EDT
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Price: $244.05 --0%

Rating Summary:
    13 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 26 | New: 12
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Evercore ISI analyst Vijay Kumar raised estimates and his price target on Becton Dickinson (NYSE: BDX) but maintain a Hold rating following results.

The price target goes to $165.00 (from $154.00), FY FY16 EPS Raised from $8.47 to $8.60; FY17 EPS Raised from $9.30 to $9.60; FY18 EPS Raised from $10.40 to $10.75.

Kumar commented, "BDX reported a good Q, highlighted by a solid EPS beat and generally in-linish revenues. On the revenue front, sequential acceleration in China (grew high singles) and a stronger than expected performance in US (in-line with strong performances seen across hospital supplies & medical devices) stood out, while International Life Sciences came in soft. Management noted that tender timing (pull forward from 3Q) aided revenues in the Q (which added ~50bps to rev and 5c to bottom-line), along with benefit from device tax (given timing could not spend the credit and contributed ~6c) and lower tax rate drove the EPS beat. On the other hand, impact from WHO guidelines cause tender slippages in Africa, and caused BDX to lower EM growth expectations slightly, that was offset by stronger growth forecast in developed regions. Overall we thought this was a good Q that reassured investors on topline trajectory given questions on last Q (recall 1Q comparable organic <2% on comps / light flu). Turning to guidance, management noted that pull forward of revenues implied 3Q growth below the 4.5-5% annual range (around ~4%ish level), with 4Q coming in above >5%. BDX also raised the EPS guidance for the year by 1.5% or 13c at the mid-point to $8.50-8.57, mainly driven by lower Fx headwinds (150 bps benefit vs. prior guidance). We believe that the guidance provides cushion to BDX in managing its EPS (by potentially dropping down med device tax benefit to the bottomline as against spending), and in this environment, we contend that this flexibility will be valued by investors. That being said, we continue to be on sidelines given current valuation levels."

For an analyst ratings summary and ratings history on Becton Dickinson click here. For more ratings news on Becton Dickinson click here.

Shares of Becton Dickinson closed at $161.60 yesterday.



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