Skip to main content

Market Overview

Citi Downgrades Becton Dickinson To Sell

Citi Downgrades Becton Dickinson To Sell

Citi cut Becton Dickinson and Co (NYSE: BDX) to Sell from Neutral as it expects a cyclical U.S. slowdown to drive lower-than-expected organic growth and impact the stock's recently improved valuation versus peers.

The brokerage said it would be tough for the developed markets to sustain its recently elevated growth due to lower healthcare utilization this year, and it is expected continue to fall in 2017, thereby hurting BD's MPS division. Citi also sounded cautious on growth prospects for maturing product cycles such as Alaris and Pyxis.

"We see a diminishing impact on growth from emerging markets, which once contributed over 50 percent of total growth for the company but will likely only contribute about one third of total growth going forward, and as an aside we're slightly cautious on the timing of O-US synergy benefits from CFN. The extra burden will shift to developed markets," analyst Amit Hazan wrote in a note.

Related Link: Cowen: Becton Dickinson Well Positioned Relative To 2016, 2017 Expectations

As such, Hazan cut his price target to $165 from $167 to reflect lower growth expectations. The analyst also cut 2016/2017 EPS estimates to $8.53/$9.10 from $8.54/$9.16.

Shares of Becton Dickinson closed Thursday's regular trading session at $181.55. In Friday's pre-market hours, they were down 1.20 percent to $179.38.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for BDX

Feb 2021CitigroupMaintainsNeutral
Jan 2021Raymond JamesMaintainsOutperform
Dec 2020Morgan StanleyUpgradesEqual-WeightOverweight

View More Analyst Ratings for BDX
View the Latest Analyst Ratings


Related Articles (BDX)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Short Ideas Downgrades Health Care Price Target Analyst Ratings Movers Best of Benzinga

Latest Ratings

NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at