Jefferies Maintaining Buy On Becton, Dickinson (BDX)

Jefferies & Co. has a Buy rating and a $96 price target on shares of Becton, Dickinson and Co. BDX after the company reported better than expected earnings. In a note to investors, Jefferies writes, "1Q11 EPS $0.06 ahead of consensus. BDX's fiscal-1Q11 (Dec) EPS of $1.35 exceeded our $1.25 forecast as a lower than expected tax rate (+$0.08) and better profitability more than offset a modestly weaker revenue experience. We are maintaining our FY11 EPS forecast ($5.50) and price target ($96). Formal FY11 financial guidance maintained. BDX maintained the mid-point of its formal FY11 EPS growth forecast at +11% (implies $5.50) and reiterated its initial organic revenue growth outlook of 4% (+6% ex-H1N1, stimulus comparison impacts). Modest organic revenue growth shortfall. BDX's 1Q11 organic revenue contracted 1.5% (+2.5% ex-H1N1, stimulus) and fell shy of our +1% forecast, reflecting weaker than expected experiences at its Medical (-4% vs. our -1.5%), Diagnostics (+0.6% vs. our +3%) and Biosciences (+3.5% vs. our 5%) franchises. Adjusted for discrete effects, we calculate BDX's two-year organic revenue growth trend decelerated modestly in 1Q11 (+8% vs. +11% in 4Q10)." Shares of BDX lost $2.93 in after-hours trading to $82.71, a loss of 3.4%.