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Valued at a market cap of $11.3 billion, Baxter International Inc. (BAX) is a global healthcare and medtech company headquartered in Deerfield, Illinois. It specializes in medical products and pharmaceuticals focused on intravenous (IV) therapy, surgical care, anesthesia, drug compounding, and connected healthcare systems.
Shares of BAX have lagged behind the broader market over the past 52 weeks. BAX has fallen 39% over this time frame, while the broader S&P 500 Index ($SPX) has gained 14.5%. Moreover, Baxter International stock has dipped 24.7% on a YTD basis, trailing SPX's 6.1% upstick.
Looking closer, the medical products maker has also struggled to keep up with the Health Care Select Sector SPDR Fund's (XLV) 13.3% drop over the past 52 weeks and 4.7% plunge in 2025.
On Jul. 31, Baxter posted its second-quarter earnings, and its shares dipped 22.4% as the company lowered its full-year guidance, projecting EPS of $2.42–$2.52, citing ongoing operational headwinds and cautious hospital spending. It reported revenue of $2.81 billion, up 4% year-over-year and in line with guidance, while adjusted EPS rose 28% to $0.59.
For the current fiscal year, ending in December 2025, analysts expect BAX’s EPS to grow 31.8% year-over-year to $2.49. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, while missing on one occasion.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, ten “Holds,” and one “Moderate Sell.”
This configuration is less bullish than a month ago, with five “Strong Buy” ratings on the stock.
On August 1, Wells Fargo & Company (WFC) analyst Larry Biegelsen maintained an "Equal-Weight" rating on Baxter International but sharply cut the price target from $33 to $24, a 27.3% reduction, reflecting a more cautious outlook on the stock.
BAX’s mean price target of $36.21 implies a 64.9% from the current market prices. The Street-high price target of $42 implies a robust potential upside of 91.3% from the current price levels.
