Piper Jaffray Reiterates Neutral Rating, $74 PT on Becton, Dickinson and Co.
In a report published Monday, Piper Jaffray & Co. reiterated its Neutral rating and $74.00 price target on Becton, Dickinson and Co. (NYSE: BDX).
Piper Jaffray noted, “Ypsomed recently announced a deal with LifeScan (JNJ) for the supply of insulin pen needles signaling new domestic competition in one of BD's more profitable divisions. BD's Analyst Day (11/7/11) pegged the FY11 pen needle and infusion market at ~$1B and growing >6%, with BD the market share leader (~52%). In FY12, Diabetes Care was BD's best-performing segment, growing 7.5% in CC (+8.4% U.S., +6.8% in CC OUS). We are not modifying our estimates as a result of the Ypsomed/LifeScan announcement, but this agreement marks the first major glucose meter competitor entering this market and suggests potential 2013/2014 headwinds for BD's Diabetes business. We remain Neutral on BDX shares with a $74 price target.”
Becton, Dickinson and Co. closed on Friday at $77.34.
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