UPDATE: Bank of America Raises PT to $70 on Baxter International; Gambro Strategic Fit at Steep Price

Bank of America reiterated its Buy rating on Baxter International BAX and increased its price target from $67 to $70. Bank of America commented, "On Friday the Wall Street Journal and several other media outlets reported that BAX is in talks to acquire privately held Gambro for $4bn (BAX's market cap is $38bn). Gambro is the #2 share player in the hemodialysis technology market where BAX has little presence, and BAX is #1 in the peritoneal dialysis market where Gambro has no presence. In our view, in the hands of BAX, Gambro would be a much tougher HD competitor and a strong strategic fit, with the potential for significant synergies, but a $4bn price tag creates a very high hurdle for positive returns in our view." Baxter International closed at $67.18 on Friday.