Investing.com -- Becton Dickinson & Co. was hit with downgrades from both Goldman Sachs and Piper Sandler on Thursday, as analysts cited weakening organic growth, repeated revenue misses, and eroding confidence in management’s outlook.
Goldman Sachs downgraded BDX from Buy to Neutral and cut its 12-month price target to $192. “We got this call wrong,” the firm admitted, noting the stock has fallen 25% since it was added to Goldman’s Buy list in May 2024.
“The forward outlook for organic revenue growth has shifted from ~5-6% two years ago to ~3-4% under current operating dynamics,” Goldman wrote, adding that this places the company at the low end of the MedTech sector.
Goldman also reduced its organic growth expectations for fiscal years 2025 and 2026 to 3.0% and 4.1%, respectively, citing macroeconomic challenges such as de-stocking, flu season variability, and research funding constraints.
Piper Sandler echoed the disappointment, also downgrading BDX to Neutral and lowering its price target to $185.
“Too many misses, confidence eroded,” analysts wrote. “Our patience has fully worn out on the checkered execution path for organic revenue.”
Piper highlighted that in the fiscal second quarter, “nearly every segment revenue line missed our model on an organic growth basis,” despite plausible external headwinds.
The firm questioned management’s ability to reliably forecast demand and said it could no longer defend the company’s guidance as conservative or achievable.
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