Research Notes: Down 50%, Is Baxter A Buy?

After decades of outperformance, BAX has crashed. Is there hope for a rebound?

Highlights:

• Healthcare stock Baxter International used to be one of the best in the market. But the stock has been halved since the start of 2020.

• Coronavirus and inflation have played a role, but a poor acquisition has been a huge contributor as well.

• At ~15x earnings and ~11x EBITDA, the stock trades at a big discount to historical levels and medtech peers.

• With a long-term focus there could be some value here.