Morgan Stanley Overweight on Baxter International

Morgan Stanley is out with a research report on Baxter International

and it has an Overweight rating and a $63 price target on shares. In a note to clients, Morgan Stanley writes, "We're reducing our 2012 EPS estimate to $4.62 from $4.74. Macro pressures on Baxter's business appear to be accelerating slightly. This is particularly true in Europe, where austerity cost $30-40 million ($0.05) in 2011 and may cost as much or more in 2012. Several additional company specific headwinds (most notably $0.08-0.09 in incremental pension costs) may stymie a growth reacceleration into next year. We're more comfortable with our new estimate, which is below consensus of $4.70 by 2%." Shares of BAX lost $2.57 yesterday to close at 51.36.