Baxter International: The Vantive Transition Complicates Margin Recovery
Baxter International is rated Hold, with a $25 target price and limited 2.6% upside, reflecting muted near-term margin recovery. Revenue growth is supported by Advanced Surgery and compounding, but infusion solutions face structural headwinds, and Novum IQ LVP supply issues persist. Margins lag revenue growth; cost reductions and inventory normalization may help, but transition expenses and debt reduction remain priorities through 2027.