Investing.com – Becton Dickinson & Co. received sales from both Goldman Sachs (NYSE: GS) and Piper Sandler on Thursday, since analysts cited a weakening of organic growth, repeated income breaches and an erosion of confidence in the perspectives of the management.
Goldman Sachs degraded BDX for purchase to neutral and reduced its target price at 12 months to 192 dollars. “We were wrong in this recommendation,” the firm admitted, noting that the shares have fallen 25% since they were added to the Goldman purchase list in May 2024.
“The future perspectives for organic income growth have gone from approximately 5-6% two years ago to approximately 3-4% under the current operational dynamics,” Goldman wrote, adding that this places the company at the lower end of the Medtech sector.
Goldman also reduced his expectations for organic growth for fiscal years 2025 and 2026 to 3.0% and 4.1%, respectively, citing macroeconomic challenges such as inventory reduction, the variability of the flu season and restrictions on research financing.
Piper Sandler echoed the disappointment, also degrading BDX to neutral and reducing its target price to $ 185.
“Too many breaches, eroded trust,” analysts wrote. “Our patience has completely exhausted the irregular trajectory of execution for organic income growth.”
Piper stressed that in the second fiscal quarter, “almost all segment revenue lines did not reach our model in terms of organic growth,” despite the plausible winds against external.
The firm questioned the ability of the management to reliably forecast the demand and said that it could no longer defend the company’s projections as conservative or attainable.
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