Becton, Dickinson's (BDX) fiscal Q3 results delivered another beat and raise and showed the company returning to middle single digit topline growth, RBC Capital Markets said in a note emailed Friday.
However, the company's "growth recovery back to consistent middle single digit growth is yet to be proven out," even though the beat was a "positive indicator of improving business performance," the note said.
Factors like Alaris, China, and vaccine headwinds will likely weigh on the company's 2027 performance, RBC said.
The investment firm noted that the company's management raised the 2026 organic growth outlook to the high end of low single digit from just low single digit previously, and also raised the EPS mid-point guidance.
For 2027, however, the framework remains low single digit revenue growth due to a 200 basis-point Alaris remediation headwind and China likely decreasing to 3% to 4% of revenue, the note said.
RBC kept the company's sector perform rating and lifted its price target to $180 from $175.
Price: 175.48, Change: -1.59, Percent Change: -0.90
Comments