UPDATE: BMO Capital Markets Initiates Coverage on Baxter International with Outperform Rating, $70 PT

In a report published Wednesday, BMO Capital Markets initiated coverage on Baxter International (NYSE: BAX) with an Outperform rating and $70.00 price target.BMO Capital noted, “We are initiating coverage of Baxter with an OUTPERFORM rating and a $70 price target. Baxter is an established and diversified global health care leader, generating 2011 sales of $13.9 billion (up 4.0% ex-fx) and operating two key divisions: BioScience (44% of 2011 revenue) and Medical Products (56% of revenue). It has one of the most robust pipelines of our coverage universe, and for the company, one of the most comprehensive in the last 25 years. Based on BAX's total return, long-term EPS growth plus dividend, we do not believe the current valuation reflects the company's return characteristics (lower P/E multiple, better return).”Baxter International closed on Tuesday at $60.96.