Baxter: Shares Look Attractively Valued Considering its Improving Intermediate-Term Outlook

Shares of narrow-moat Baxter appear heavily discounted below our $67 fair value estimate because of recent cost and contractual pressures that have eaten into the firm's profitability. However, we expect many of those pressures to ease by 2025, which should improve the outlook and market sentiment for its undervalued shares, eventually.