Analyst Note| Alex Morozov, CFA |
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.