Baxter (BAX)
Baxter Intl (BAX) has not been on an amazing tear this year and is vastly underperforming the S&P 500 wit a mere 9.5% gain YTD vs the broad market’s 20% but Goldman Sachs thinks that is all about to change.
Today Goldman Reinstated BAX with a Conviction Buy rating and an $86 price target which using today’s closing price of $71.64 means that Goldman sees a roughly 20% price increase coming in BAX. Being that it was added to the Conviction Buy rating, as I have noted before, this makes me believe Goldman thinks the gains should be coming sooner rather than later.
Looking at BAX’s chart, we can see a potential Inverse Head & Shoulders pattern which provides a potential target near $83.50; not far from Goldman’s likely more fundamental target.
The technicals and fundamentals may be lining for BAX to make a move into the 80’s but will likely need more time to consolidate before any such march ensues. This is one to watch.