Overview
Jefferies has lowered its 12-month price target for Becton Dickinson (NYSE: BDX) to $190.00 from $220.00 but maintained a Buy rating on the medical technology company’s shares. The new target sits below Becton Dickinson’s then-current trading price of $207.55 and is substantially beneath InvestingPro’s Fair Value assessment, a contrast the firm noted as it adjusted its outlook.
Quarterly results and operational metrics
Becton Dickinson reported fiscal first-quarter revenue of $5.25 billion, a 0.4% increase year-over-year, and ahead of the consensus estimate of $5.15 billion. Adjusted earnings per share were $2.91, beating analysts’ consensus of $2.81. Management reported "New BD" sales growth of 2.5%, which the company characterized as broad-based across its business segments.
The company reiterated its fiscal 2026 guidance for "New BD," forecasting low-single-digit sales growth and an operating margin target of 25%. Management also maintained an EPS outlook in the range of $12.35 to $12.65 for fiscal 2026, which represents a 4.7% to 7.2% increase relative to the prior comparable period.
Analysts' rationale and market reaction
Jefferies said its $190 price target corresponds to roughly 14 times its estimate of Becton Dickinson’s fiscal year 2027 earnings per share. The firm stated that the reduction in target was driven by factors tied to the company’s planned separation.
In related analyst activity, RBC Capital maintained a Sector Perform rating on Becton Dickinson and reiterated a $210.00 price target. RBC Capital analyst Shagun Singh highlighted that the company’s top-line growth of 0.4% year-over-year exceeded the firm’s prior guidance, which had projected a low-single-digit decline.
Despite the quarterly beats, the stock slipped in pre-market trading, a movement the market interpreted as reflecting investor concerns about operational margins and the company’s forward guidance.
Context and takeaways
The juxtaposition of the beat on revenue and adjusted EPS with a lowered price target from a major broker underscores active debate among analysts over how to value Becton Dickinson during a period of structural change - namely, the planned separation. Jefferies' valuation multiple and RBC’s steady stance illustrate differing views on near-term risks and longer-term prospects for the medical technology company.
Note: The article presents reported results, guidance and analyst actions as stated by the company and the firms mentioned.