Becton Dickinson price target raised to $280 from $275 at Piper Sandler

Piper Sandler raised the firm’s price target on Becton Dickinson (BDX) to $280 from $275 and keeps an Overweight rating on the shares. The firm notes shares have struggled mightily the past 6-plus years, underperforming the IHI and S&P by 75% and 120% during that time, and that’s despite the company executing on margin commitments and delivering better-than-expected year 1 results in returning Alaris to market. Accordingly, there have been growing investor calls for Becton Dickinson to consider strategic alternatives to unlock value, with the most frequent route cited being a potential Life Sciences spin-off, Piper says. The firm finds itself supportive of this camp as it would likely accomplish several positives for shareholders while introducing only minor dis-synergies typical of any separation, and sees total value for shareholders about 10%-30% above Becton Dickinson’s current share price. While timing is tough, an announcement ahead of the late-Feb Investor Day could make sense, enabling management to direct the Investor Day at the strategic and financial opportunities for RemainCo.