Becton, Dickinson (BDX) will take 12 to 18 months to have consistent mid-single-digit organic growth as headwinds are expected to persist through fiscal 2027, RBC Capital Markets said in a Thursday note.
The company is aiming for a long-term profile of mid-single-digit revenue growth and high-single-digit EPS growth with dividends, RBC analysts said. For fiscal 2027, the management is taking a responsible stance, with revenue growth expected in the low-single digits and modest EPS leverage, according to the note.
The analysts said the expected headwinds impacting the company are China, where sales are seen falling to about 3% of revenue in fiscal 2027; its vaccine business, which is down about 30% in the current year but seen stabilizing into the next year; and its Alaris infusion system.
RBC is positive on the company's diversified portfolio, BD Excellence program productivity, and commercial momentum across its growth platforms.
RBC reiterated the company's stock rating at sector-perform and raised the price target to $190 from $180.
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