Sell health-care stock Baxter International as headwinds mount, Goldman says
Baxter International is overexposed to more risks compared to other health-care companies, according to Goldman Sachs. Analyst Amit Hazan downgraded Baxter International to sell from neutral, saying in a Sunday note to clients that the health-care company is more exposed to rising oil prices, semiconductor shortages and currency headwinds than its peers. "As we relate all the factors discussed in this report to the companies we cover, it is our view that BAX is over-indexed to most of these factors relative to others in the group," Hazan wrote. Hazan cut the 12-month price target to $77 from $88. The new price target implies 2% downside from where shares closed on Friday. Other "pockets of concern" remain for Baxter's core business. Demand for products for kidney disease will remain "subdued" during the pandemic, and its vaccine refilling business will likely be a $50 million headwind for the company, Goldman said. An inability to pass on higher costs to customers, as well as a lower margin profile, also hurts the company. In comparison, other peers including Agiliti , Becton Dickinson and Company , and Intuitive Surgical had buy ratings from the investment bank. Shares for Baxter International dipped 3.3% in Monday premarket trading.

In this photo illustration, the stock market information of Baxter International Inc displayed on a smartphone while the logo of Baxter International Inc seen in the background. Igor Golovniov | Lightrocket | Getty Images