On Wednesday, KeyBanc Capital Markets maintained its Overweight rating on shares of ICU Medical (NASDAQ:ICUI) with a steady price target of $209.00. The affirmation follows a recent survey on infusion pumps, indicating potential market share gains for the company.
ICU Medical (TASE:PMCN) was ranked second in vendor preference, capturing about 28% of customer selection compared to its current market share of approximately 18%. The survey results suggest ICU Medical is well-positioned to retain its existing customer base in the upcoming upgrade cycle, boasting the highest expected retention rate among competitors.
The survey placed Becton Dickinson (NYSE:BDX) in the lead, while Baxter International (NYSE:{{7951|BABAX) and B. Braun occupied the third and fourth positions, respectively. BDX, a prominent player in the Healthcare Equipment & Supplies industry, maintains a strong market position with a $64 billion market cap and has raised its dividend for 54 consecutive years.
Despite limited data on Fresenius, the feedback for Ivenix was notably positive. KeyBanc's $209 price target for ICU Medical is based on a 14-times multiple of the firm's projected 2026 EBITDA.
According to InvestingPro, BDX shows strong financial health with an overall score of "GOOD" and maintains relatively low price volatility. Subscribers can access 10+ additional exclusive ProTips and comprehensive financial metrics for deeper analysis.
In light of ICU Medical's recent joint venture agreement for IV Solutions, KeyBanc has adjusted its EBITDA estimate by a $25 million reduction due to the IV Solutions contribution. Concurrently, an additional $200 million from the upfront payment of the agreement has been factored into the enterprise value calculation.
Currently, ICU Medical's shares are trading at 18.0 times P/E, 11.1 times EV/EBITDA, and 2.3 times EV/sales, based on KeyBanc's adjusted 2026 estimates. These figures compare to the 2019-2023 trading multiples of 26.3 times P/E, 15.1 times EV/EBITDA, and 2.9 times EV/sales. For comparison, BDX currently trades at an EV/EBITDA of 16x with a P/E ratio of 37.8x.
The analyst highlighted several risks that could prevent ICU Medical's shares from achieving the target price, including potential reductions in global healthcare spending, integration challenges, competitive pressures, and new regulatory actions by the FDA. These factors are seen as the primary uncertainties that could influence the company's stock performance in the future.
For a deeper understanding of the healthcare equipment sector and comprehensive analysis of both ICU Medical and BDX, access the full Pro Research Reports available exclusively on InvestingPro, covering 1,400+ top US stocks with expert insights and actionable intelligence.
In other recent news, Becton Dickinson (BD), a significant player in the global medical technology scene, reported robust financial outcomes in its Fourth Quarter and Full-Year Fiscal 2024 Earnings Call. The company saw a 7.4% growth in Q4 revenue and a 5% full-year organic revenue increase.
Adjusted diluted earnings per share (EPS) also rose by 11.4%, reaching $13.14 for the full year. Despite challenges in the Chinese market and the Bioscience-Pharma sector, BD's MedTech and Diagnostics segments experienced substantial growth.
BD has also announced a $1 billion share repurchase plan and increased its dividend by 9.5%. The company anticipates revenue between $21.9 billion and $22.1 billion for FY '25, with adjusted diluted EPS guidance of $14.25 to $14.60. In the face of a projected mid-single-digit decline in China due to value-based procurement pressures, BD remains optimistic about high single-digit revenue growth for FY '25.
These are among the recent developments for BD, which continues to focus on innovation and corporate responsibility while navigating global market dynamics. The company's management also discussed the integration of Advanced Patient Monitoring and its potential for 6% to 7% growth, underscoring BD's strategic approach to growth and capital allocation.
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