RBC Capital has reduced its price target on Becton Dickinson (NYSE:BDX) to $172.00 from $210.00 and maintained a Sector Perform rating on the medical technology company’s stock. The shares are trading around $167, close to their 52-week low of $162.29, even as InvestingPro data flags BDX as appearing undervalued against its Fair Value assessment.
The revision follows Becton Dickinson’s fiscal first-quarter 2026 report, which showed ex-foreign exchange revenue growth of 0.4% year-over-year - a result that outperformed the company’s previously issued guidance calling for low-single-digit declines. The quarter also produced earnings beats: diluted EPS topped analyst estimates by $0.10, and the company said it has completed the separation of its Lifesciences business.
On a trailing-12-month basis, BDX’s diluted EPS stands at $6.12. Analysts’ consensus estimates for fiscal 2026 place EPS at $12.38. Management maintained the full-year outlook for the reconstituted business - described as the "New BD" - with guidance calling for low-single-digit year-over-year ex-foreign exchange revenue growth and earnings per share in a $12.35 to $12.65 range; RBC noted this guidance remains unchanged on an operational basis.
At a market capitalization of $47.37 billion, Becton Dickinson yields 2.03% on its dividend and has a long record of shareholder payouts, having paid dividends for 56 consecutive years, according to InvestingPro data. RBC’s latest commentary emphasized that the firm wants to see a credible return to mid-single-digit revenue growth before upgrading its view - a key factor in the decision to retain a Sector Perform rating. The note also observed that roughly 90% of BDX’s business is currently delivering mid-single-digit growth.
Valuation remains a focal point for analysts. BDX is trading at a price-to-earnings ratio of 34.29, which matches InvestingPro’s characterization of the stock as trading at a high earnings multiple. For investors seeking additional detail, a Pro Research Report on BDX is available as part of broader coverage across more than 1,400 U.S. equities on that platform.
Additional detail from the first-quarter release shows revenue of $5.3 billion, above the $5.15 billion that had been anticipated, and EPS of $2.91 compared with an expected $2.81. Despite the quarter’s upside surprises on both top and bottom lines, several analysts adjusted their price targets downward on growth concerns.
Piper Sandler trimmed its target to $170 while maintaining a Neutral rating, citing growth-related worries. Jefferies cut its target to $190 from $220 but kept a Buy rating. The reporting also referenced an iteration in which RBC maintained a Sector Perform rating with a $210 price target, noting that the company exceeded its own guidance for revenue growth.
These developments underscore a split between operational results that beat near-term expectations and cautious analyst views centered on whether growth will sustainably accelerate. Investors evaluating BDX must weigh stronger-than-expected quarterly performance and a long dividend track record against questions about valuation and the pace of recovery.