Wall Street Zen Upgrades Baxter International (NYSE:BAX) to Buy

Key Points

• Wall Street Zen upgraded Baxter International to “buy” from “hold,” but broader analyst sentiment remains cautious: the stock has an average “reduce” rating and a consensus price target of $23.00.
• Baxter’s latest quarter beat expectations, with earnings of $0.58 per share versus $0.52 expected and revenue of $2.98 billion, up 5% year over year. Analysts expect full-year EPS of approximately $2.05.
• Investors face both support and risks: institutional investors own 90.19% of shares, while an FDA warning letter citing manufacturing violations could lead to remediation costs and operational disruptions.

Baxter International (NYSE:BAX - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other analysts have also commented on BAX. The Goldman Sachs Group increased their price objective on Baxter International from $19.00 to $21.00 and gave the company a "neutral" rating in a research note on Wednesday, July 15th. TD Cowen boosted their price target on Baxter International from $20.00 to $24.00 and gave the company a "hold" rating in a report on Monday, July 27th. Wolfe Research assumed coverage on Baxter International in a research note on Tuesday, October 20th. They set a "peer perform" rating on the stock. Weiss Ratings cut Baxter International from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, October 8th. Finally, Wells Fargo & Company lifted their price objective on Baxter International from $23.00 to $25.00 and gave the company an "equal weight" rating in a research report on Friday. One analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $23.00.

Baxter International Price Performance

BAX stock opened at $22.95 on Friday. The firm has a 50 day moving average of $24.59 and a 200-day moving average of $21.37. Baxter International has a 12-month low of $15.73 and a 12-month high of $30.00. The company has a current ratio of 1.95, a quick ratio of 1.32 and a debt-to-equity ratio of 1.39. The company has a market cap of $11.87 billion, a price-to-earnings ratio of 12.11, a PEG ratio of 3.54 and a beta of 0.65.

Baxter International (NYSE:BAX - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The medical instruments supplier reported $0.58 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.06. Baxter International had a positive return on equity of 16.48% and a negative net margin of 6.23%. The business had revenue of $2.98 billion for the quarter, compared to analysts' expectations of $2.91 billion. During the same quarter in the prior year, the firm posted $0.69 EPS. The company's revenue was up 5.0% compared to the same quarter last year. As a group, equities analysts expect that Baxter International will post 2.05 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Baxter International in the second quarter valued at approximately $1,744,874,000. Pzena Investment Management LLC purchased a new stake in shares of Baxter International during the second quarter valued at approximately $1,392,098,000. Equity Investment Corp acquired a new position in shares of Baxter International during the second quarter worth $146,815,000. Bank of America Corp DE acquired a new position in shares of Baxter International during the second quarter worth $132,993,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Baxter International in the second quarter valued at $68,036,000. Institutional investors and hedge funds own 90.19% of the company's stock.

Key Stories Impacting Baxter International

Here are the key news stories impacting Baxter International this week:

• Positive Sentiment: Baxter reported third-quarter adjusted earnings of $0.58 per share, exceeding the $0.52 analyst consensus, while revenue increased 5% year over year to $2.98 billion and topped expectations of $2.91 billion. Growth was described as broad-based across the company’s segments. Baxter Q3 Earnings Beat on Broad-Based Growth, 2026 Outlook Raised
• Positive Sentiment: Management raised its full-year 2026 earnings outlook, signaling confidence in operating performance despite ongoing pressure on profitability. However, quarterly EPS remained below the $0.69 reported a year earlier. Baxter Raises 2026 Earnings Guidance
• Positive Sentiment: Wells Fargo raised its price target for BAX to $25 from $23, implying potential upside from recent trading levels. The firm maintained an “equal weight” rating, suggesting a constructive but cautious view. Wells Fargo Baxter Analyst Ratings
• Neutral Sentiment: Baxter declared a quarterly dividend of $0.01 per share, or $0.04 annualized. The approximately 0.2% yield provides minimal income support but maintains a cash-return program. Baxter Raises Guidance and Declares Dividend
• Negative Sentiment: The FDA issued Baxter a warning letter citing CGMP violations. The regulatory action could increase remediation costs, create operational disruptions, and raise concerns about compliance and product quality. Baxter Received FDA Warning Letter

About Baxter International

Baxter International Inc is a global medical products and healthcare technology company headquartered in Deerfield, Illinois. The company develops, manufactures and distributes products used in hospitals, clinics, ambulatory care centers and other healthcare settings.

Baxter's portfolio has included intravenous therapies and administration systems, infusion pumps, connected-care technologies, surgical products, patient monitoring equipment and products used in medication preparation and delivery.

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