BAX Should I Buy
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Baxter International Inc (BAX) is not a strong buy for a beginner investor with a long-term focus at this time. The company is in the early stages of a turnaround, but its recent financial performance, negative price action, and lack of significant positive catalysts make it a less favorable choice. Given the investor's profile and the current state of the stock, holding or waiting for further clarity on the company's turnaround progress would be more prudent.
The technical indicators suggest a bearish trend. The MACD is negatively expanding, RSI is at 25.486 indicating oversold conditions, and the stock is trading below key support levels (S1: 19.164, S2: 18.259). Moving averages are converging, showing no clear trend reversal.
Barclays sees the current uncertainty as adequately discounted in the stock price.
Gross margin dropped significantly YoY, and the stock has experienced a sharp decline of 15.99% in the regular market session. Options data and technical indicators also reflect bearish sentiment.
In Q4 2025, revenue increased by 8.03% YoY to $2.97 billion, but net income was negative at -$1.128 billion, reflecting a 120.31% YoY decline. EPS was -$2.21, down 121% YoY, and gross margin dropped to 19.4%, a significant decline of 47.44% YoY.
Analyst sentiment is mixed. Barclays maintains an Overweight rating with a price target of $30, citing potential clarity in Q4 results and 2026 outlook. Goldman Sachs raised the price target to $23 but remains Neutral. Evercore ISI and Citi see potential upside but remain cautious, while Morgan Stanley is bearish with an Underweight rating and a $15 price target.
