Baxter International, Inc. (BAX) is a global medical products and services company with expertise in medical devices, pharmaceuticals and biotechnology. BAX operates three main lines of business: BioScience, Medication Delivery, and Renal.
We believe these markets will remain relatively insulated from the current economic turmoil, providing investors good quality returns on a risk-adjusted basis. Baxter's strong market position is demonstrated in its recent quarterly performance that exceeded estimates and led management to increase fiscal 2008 EPS guidance for the second quarter in a row.
Our 2008 EPS estimate remains within management's guidance of $3.35-$3.37. We believe BAX should trade at a 20% premium to the group P/E/G average of 1.2. The resulting P/E is 19.7x 2008, producing a target price of $66.25.
Read the full analyst report on BAX.
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