UPDATE: Goldman Sachs Downgrades Baxter International as Increased Dependence on Pipeline Raises Risk

In a report published Monday, Goldman Sachs analyst David H. Roman downgraded the rating on

from Conviction List-Buy to Buy, and lowered the price target from $83.00 to $77.00. In the report, Goldman Sachs noted, “We are removing shares of Baxter International (BAX) from the Americas Conviction List but retaining our Buy rating relative to our US MedTech coverage. Our original thesis on Baxter was three-fold: (1) strong underlying base plasma business dynamics provided a source of sustainable growth; (2) the company's late stage pipeline offered the potential for an accelerating organic top-line; and (3) fears over the hemophilia franchise were overblown. "We saw the totality of these factors ultimately driving above peer top-line growth in the context of attractive valuation. Following IPPC, we see the plasma business under greater competitive pressure, putting more of the upside case on the pipeline and raising the stock's risk profile, in our view. Since being added to the Americas CL (8/6/13), BAX is -7.7% vs. the S&P 500 +8.5%, as our thesis has not played out as fears of looming competition in several key franchises have weighed on share performance.” Baxter International closed on Friday at $66.49.