Baxter (BAX) Stock Forecast & Price Target

Baxter International has demonstrated positive momentum in its Healthcare Systems & Technologies segment, with sales growth of approximately 6% in 1Q25 and 2% in 2Q25, supported by anticipated growth rates of around 4% and 2% for 3Q25 and 4Q25, respectively. Additionally, the company's strategic pricing initiatives are expected to yield approximately 100 basis points in sales growth benefits for both 2024 and 2025, reflecting ongoing efforts to enhance revenue generation. Baxter's recent acquisition of Hillrom has diversified its product offerings, strengthening its market position in critical medical supplies and hospital equipment, which could further bolster long-term financial performance.

Baxter International recently reported a disappointing second quarter of 2025, with sales, margins, and earnings per share all falling below consensus expectations, indicating ongoing financial difficulties. The company's struggles stem from a challenging operational period between 2021 and 2023, marked by both external factors and self-inflicted missteps that led to mixed quarterly performances and negative guidance revisions. Additionally, manufacturing inefficiencies and an unfavorable product mix contributed to gross margins of 40.7%, significantly missing the consensus estimate of 42.7%, and operating margins of 15.1%, which also lagged behind expectations by over 100 basis points.