UPDATE: ISI Group Initiates Becton, Dickinson and Co. at Buy on Multiple Positive Factors
In a report published Tuesday, ISI Group analyst Vijay Kumar initiated coverage on Becton, Dickinson and Co. (NYSE: BDX) with a Buy rating and $106.50 price target.
In the report, ISI Group noted, “We view Becton, Dickinson and Co (BDX) as a premier provider of medical devices, diagnostic instruments, and reagents to hospitals as well as pharma, academic, and clinical labs. We contend that the company's attractively diversified portfolio (Medical ~50% of revs, Diagnostics ~35% of revs and Biosciences ~15% of revs), should allow for mid single digit top-line growth over the medium-term. This will be driven mainly by new product momentum, increased leverage to the emerging markets, and continued strength in safety engineered products. With respect to new product momentum, we see several offerings that have been underappreciated by the Street including: BD Max (MDx), BD Rx (prefilled generics), Kiestra microbiology automation (MDx), Carmel closed drug transfer systems, Accuri flocytometry, and Sirigen (reagents). When combined with advancements in pen needles, we expect innovation to contribute ~250 bps to organic growth going forward. Lastly, we believe that emerging markets (~25% of revs) will continue to grow low double digits (with China up strong double digits), while safety engineered products (prevention of needle sticks) should expand in the high single digit range.”
Becton, Dickinson and Co. closed on Monday at $97.72.
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