UPDATE: Morgan Stanley Raises PT on Baxter International on Neutral Risk-Reward
In a report published Monday, Morgan Stanley analyst David R. Lewis reiterated an Overweight rating on Baxter International (NYSE: BAX), and raised the price target from $71.00 to $84.00.
In the report, Lewis noted, “We see a neutral risk-reward into Baxter's highly-anticipated PIII Alzheimer's data. We estimate the stock price currently includes roughly $3-5 in AD optionality, placing likely downside at 3-10% for a total failure (missed primary endpoints, missed subgroup analyses). Upside in the unlikely (p=5%) case of success on both primary endpoints could be $6-11, or 8-15%. Several intermediate cases of mixed results or suggestive subgroup analyses could drive less extreme outcomes and will likely punt investment implications until the presentation of full data results.”
Baxter International closed on Friday at $70.94.
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