Raymond James: Downgrade Due to Slowing Growth and Innovation Gaps
Raymond James has downgraded Becton Dickinson from “Outperform” to “Market Perform,” citing concerns over the company’s growth trajectory.
Analyst Jayson Bedford noted difficulties in identifying significant innovations that could rejuvenate growth, despite substantial R\&D investments.
The firm’s revised expectations now estimate a 3-5% revenue growth and a 6-8% EPS increase, down from previous forecasts of 5-6% and 8-10%, respectively.
📉 Goldman Sachs: Downgrade Reflects Lowered Growth Estimates
Goldman Sachs has shifted its rating on Becton Dickinson from “Buy” to “Neutral,” adjusting the price target to \$192 from \$256.
The downgrade follows a recalibration of organic growth estimates, now projected at 3-4%, placing Becton Dickinson at the lower end of the MedTech sector.
This adjustment reflects the company’s underperformance relative to the broader market and sector peers.
⚠️ Piper Sandler: Downgrade Due to Execution Concerns
Piper Sandler has downgraded Becton Dickinson from “Overweight” to “Neutral,” with a revised price target of \$185.
Analyst Jason Bednar expressed concerns over the company’s inconsistent performance, particularly in organic revenue growth, which was less than 1% in the second fiscal quarter.
The downgrade reflects a loss of confidence in management’s ability to accurately forecast demand and execute effectively.
💰 Dividend Fundamentals
Dividend Yield: Approximately 2.03%
Annual Dividend Rate: \$4.16 per share
Payout Ratio: Approximately 28-30%
Dividend Growth: Increased dividends for 54 consecutive years
Despite recent challenges, Becton Dickinson maintains a solid dividend profile. Its strong dividend track record continues to offer value to long-term investors.