BD Continues Growing Even as COVID-19 Testing Pulls Back

We are maintaining our $306 fair value estimate for narrow-moat Becton, Dickinson as we update our model following fiscal third-quarter results and updated full-year guidance. BD increased its revenue forecast to $18.75 billion-$18.83 billion with higher COVID-only testing revenue. Including COVID-only testing revenue, the firm expects fiscal 2022 revenue to be down approximately 1.6%-2% from fiscal 2021 levels. We anticipate that much of the remaining COVID-focused production equipment will be quickly repurposed as the demand for COVID tests diminishes to push overall growth going forward.