Company Reports

After a tumultuous few years, Becton, Dickinson is undergoing course correction. The COVID-19 revenue windfall has been reinvested, which should lift the firm's core business growth in the upcoming years as the testing revenue fades. As Alaris has now returned to the market, the last remaining uncertainty has been resolved, although it is still to be seen whether the damage experienced by the franchise will be long-lasting or whether Alaris can regain its market-leading share rapidly.

We are maintaining our fair value estimate for narrow-moat Becton Dickinson following its first-quarter results. Shares are modestly undervalued.

We are maintaining our fair value estimate for narrow-moat Becton, Dickinson following its fourth-quarter results. Shares are modestly undervalued.

After a tumultuous few years, Becton, Dickinson is undergoing course correction. The COVID-19 revenue windfall has been reinvested, which should lift the firm's core business growth in the upcoming years as the testing revenue fades. Now, with Alaris' return to the market, the last remaining uncertainty has been resolved, although it is unclear whether the damage experienced by the franchise will be long-lasting or whether Alaris can regain its market-leading share rapidly.

We are maintaining our fair value estimate for Becton, Dickinson following the U.S. Food and Drug Administration's clearance of the company's Alaris Infusion System. Our narrow moat rating is unchanged as well.

We are maintaining our $306 fair value estimate for narrow-moat Becton, Dickinson following its second-quarter results. BD's performance was largely as expected, with base revenue currency-neutral growth of 5.5%.

We are maintaining our $306 fair value estimate for narrow-moat Becton, Dickinson following its first-quarter results. BD's performance was largely as expected, with base revenue currency-neutral growth of 5%.

After a tumultous few years, Becton, Dickinson is undergoing course correction. The COVID-19 revenue windfall has been reinvested, which should lift the firm's core business growth in the upcoming years once the testing revenue fades. The biggest uncertainty remains around the return of BD's pump infusion system (Alaris) to the market, which could be a material catalyst for the company whenever it occurs.

We are maintaining our $306 fair value estimate for narrow-moat Becton, Dickinson as we update our model following fiscal fourth-quarter results and the 2023 guidance. BD's fourth-quarter performance was largely as expected, with 8.6% currency-neutral growth in its base business (excludes COVID-19 testing revenue) and gradually improving margins.

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.

We are maintaining our fair value estimate of $306 for narrow-moat Becton, Dickinson following second-quarter earnings. We currently view shares as undervalued.

We are maintaining our fair value estimate for narrow-moat Becton, Dickinson following the release of first-quarter results and updated fiscal 2022 guidance. We currently view the shares as slightly undervalued.

We maintain our fair value estimate for narrow-moat Becton, Dickinson following the release of fourth-quarter results and fiscal 2022 guidance. We currently view Becton, Dickinson as slightly undervalued.

While 2020 was a challenging year for Becton, Dickinson, or BD, 2021 has been better, buoyed by Veritor demand in particular. Much uncertainty resides in the return of BD's pump infusion system (Alaris) to the market, which could be a material catalyst for the company that will see some challenging comps as testing revenue wanes.

We anticipate a moderate increase to our fair value estimate for narrow-moat Becton, Dickinson following the release of third quarter results and updated guidance for fiscal 2021. The third quarter of 2020 provided easy comparables for BD, having declined over 11% between 2019 and 2020, but the nearly 27% growth year over year for the quarter from 2020 to 2021 returned total revenue to levels in line with historical growth at $4.9 billion. We currently view BD as undervalued.

We're maintaining our fair value estimate and our narrow moat rating for Becton, Dickinson following the release of its second-quarter results. The second quarter saw similar underlying trends as the previous one; BD continues to benefit from COVID-19-related Veritor sales (albeit at lower levels) and is seeing some modest recovery in procedure volume in the developed world. BD also announced the spin-off of its diabetes franchise in 2022; we have not yet incorporated this in our model, but we don't anticipate the effect of this will be significant on our overall valuation of the company. Additionally, as we incorporate our new capital allocation framework, we are setting the company's rating at Standard.

2020 was a challenging year for Becton, Dickinson, or BD. While the company had seen a modest uptick in revenue related to the coronavirus pandemic, many of its business lines tied to hospital admissions got crushed. In addition, BD suffered from a major self-inflicted wound--a recall of its infusion pump Alaris. Combined with a paclitaxel setback to its vascular portfolio from a prior year, the company's recent execution has been far from ideal.

We're raising our fair value estimate for Becton, Dickinson to $296 per share following the release of its first-quarter results. While the company delivered a robust quarter, factors behind the outperformance will gradually fade through the year. Significant demand for BD's Veritor handheld analyzer accounted for nearly all the gains in the quarter, but with the frontloaded demand and anticipations of pricing pressure, the rest of the year should be more normal, especially as the base business still experiences headwinds from the epidemic. We maintain our narrow moat rating. Shares are modestly undervalued at current levels.

2020 was a challenging year for Becton, Dickinson, or BD. While the company had seen a modest uptick in revenue related to the coronavirus pandemic, many of its business lines tied to hospital admissions got crushed. In addition, BD suffered from a major self-inflicted wound--a recall of its infusion pump Alaris. Combined with a paclitaxel setback to its vascular portfolio from a prior year, the company's execution has been far from ideal.

We are currently maintaining our fair value estimate of $282 following the preliminary first-quarter revenue results and updated management guidance by narrow-moat Becton, Dickinson, or BD, prior to the full first-quarter earnings release on Feb. 4. BD’s preliminary fiscal first-quarter results put total revenue at approximately $5.3 billion, translating to nearly 26% growth year over year. Subsequently, management has narrowed its fiscal 2021 guidance from revenue growth in the high single- to low double digits to the higher end of the previously stated range, and forecasts adjusted diluted EPS to be above $12.60.