UPDATE: Credit Suisse Initiates Baxter International at Outperform on Solid Top-Line Growth

In a report published Wednesday, Credit Suisse analyst Bruce Nudell initiated coverage on Baxter International BAX with an Outperform rating and $81.00 price target.

In the report, Credit Suisse noted, “We see BAX's solid top-line growth (4.6% organic growth in 2012-15, 1% ahead of large-cap med-tech peers) and dividend prospects (2.8% yield, ~1% above peers), combined with in line valuation (on a P/E and PEG basis), as supportive of an Outperform rating. Our $81 DCF-derived target price (17.5 and 15.7 times our 2013-14 EPS estimates) assumes an 8.5% WACC and 1.5% terminal growth rate.”

Baxter International closed on Tuesday at $71.45.