Overview of Becton Dickinson's Stock Rating#

Evercore ISI has reinstated its coverage of Becton Dickinson & Co. (NYSE: BDX) with an Outperform rating and a price target of $180. This decision comes after a year-long pause in coverage, primarily due to the company's divestiture in Life Sciences Diagnostics.

Current Growth Outlook#

The firm views the current fiscal year as a transition period for Becton Dickinson. The separation of its Biosciences and Diagnostics segments, along with temporary challenges, is obscuring the company's underlying growth potential. Although reported organic growth has been in the low single digits, Evercore ISI believes this is mainly due to timing issues rather than fundamental problems. When excluding one-time items, the company is experiencing growth in the mid-single digits. Recent data indicates a revenue growth of 6.22% over the past year, with a market capitalization of $42.51 billion.

Identified Growth Drivers#

Evercore ISI has identified six key growth drivers that could account for about 25% of Becton Dickinson's revenues, potentially growing at a rate of 9% to 10% in the future. These drivers include GLP-1s (a type of medication), pharmacy automation, peripheral products, hernia treatments, urinary incontinence solutions, and advanced patient monitoring. These opportunities are expected to contribute approximately 250 basis points to overall growth.

Recent Developments#

In addition to the stock rating, Becton Dickinson has launched the BD CentroVena One Insertion System, the first all-in-one device for central venous catheter insertion, aimed at simplifying procedures commonly performed in the U.S. The company also declared a quarterly dividend of $1.05 per share, with an annual rate of $4.20, payable on June 30, 2026. Furthermore, BD received CE Mark approval for its Liverty TIPS Stent Graft, allowing it to be marketed in the European Union for treating complications from portal hypertension. Meanwhile, Argus has lowered its price target for BD to $180, citing market turbulence but maintaining a Buy rating.