Citi Downgrades Baxter, Cuts Price Target (BAX)

Citi Investment Research is downgrading shares of Baxter International Inc

to Sell from Hold, as it sees EPS growth falling behind its competitors. Citi also lowered the price target to $41 from $46. In a research report, Citi writes, "We believe some Street commentary on improving IVIG dynamics is too early as demand appears modest and BAX is still struggling with share losses. US albumin demand also appears to be waning and we are only assuming overall organic Plasma Protein growth of 1% in 2011. We also remain concerned that the long inventory cycle means margin improvement in 2011 for this business is unlikely." Shares of Baxter gained 15 cents yesterday, to close at $44.38.