Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 16 Feb, 24 | BAX | Buy | USD 40.89 | USD 44.0 | USD 48.7 | 21 days | 19.1% |
Data Powered by EOD Historical Data (“EODHD”).
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; intravenous therapies, infusion pumps, administration sets, and drug reconstitution devices; premixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services; parenteral nutrition therapies and related products; biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention; and continuous renal replacement therapies and other organ support therapies focused in the intensive care unit. It also provides connected care solutions, including devices, software, communications, and integration technologies; integrated patient monitoring and diagnostic technologies to help diagnose, treat, and manage a various illness and diseases, including respiratory therapy, cardiology, vision screening, and physical assessment; surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories. In addition, the company offers contracted services to various pharmaceutical and biopharmaceutical companies. Its products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic molecules; and a collaborative research agreement with Miromatrix Medical Inc. to develop treatments for patients with acute liver failure. Baxter International Inc. was incorporated in 1931 and is based in Deerfield, Illinois.
Higher Return on Equity: 0.40% in Q1FY24 vs. 0.30% of Industry Median
Improved Gross Margins: 38.90% in Q1FY24 vs. 37.20% in Q1FY23
Lower Current Ratio: 1.48x in Q1FY24 vs. 3.32x of Industry Median
Lower Net Margins: 1.10% in Q1FY24 vs. 2.1% of Industry Median
Market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 40.89 | 34.0 | 44.0 | 48.7 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financials: Operating Income of the company grew by 45% to USD 187 million during the year, mainly due higher revenue in Q1FY24.
Technical: BAX's stock performance has demonstrated strength as it maintains an upward trajectory along a sloping trendline.
Outlook: The company anticipates sales growth of ~ 2% and adjusted earning per share of USD 2.88 to 2.98 for the full year 2024.
Given the aforementinoed factors, a "Buy" recommendations has been assigned on the stock at the closing market price of USD 40.89 as on 16 February 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Medical Instruments & Supplies
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BAX Baxter International Inc |
0.73 1.98% | 37.85 | 83.43 | 12.50 | 1.28 | 2.42 | 2.01 | 15.95 |
| ISRG Intuitive Surgical Inc |
6.08 1.26% | 486.87 | 73.05 | 61.73 | 19.15 | 10.25 | 18.41 | 59.92 |
| ESLOY Essilor International SA |
-0.58 0.49% | 116.78 | 35.39 | 24.81 | 3.63 | 2.20 | 4.00 | 16.25 |
| ESLOF EssilorLuxottica Société anonyme |
- -% | 233.25 | 35.71 | 25.13 | 3.62 | 2.23 | 4.00 | 16.25 |
| BDX Becton Dickinson and Company |
0.18 0.08% | 237.35 | 47.65 | 17.51 | 3.60 | 2.69 | 4.33 | 19.06 |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and target levels is February 16, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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