BMO Capital is upgrading Baxter International from market perform to outperform, increasing estimates and boosting its price target.
"What has kept us on the sidelines are valuation and a wait-and-see approach to M&A," wrote BMO analyst Joanne Wuensch in the Tuesday report. "This seems folly with expectations that it will deliver 2Q results, raise 2017E guidance, and meaningfully increase 2020E operating margin guidance."
Wuensch attributed Baxter's success to several key points the company has addressed since its spin-off from Baxalta in July 2015. Since hiring Joe Almeida as its CEO in January 2016, the analyst notes, Baxter has "exceeded expectations."