BAX - Baxter Tandem among Barclays' bullish high-conviction calls

2023-04-11 16:03:05 ET

Following a review of Q1 expectations in its MedTech coverage, Barclays grouped Baxter International ( NYSE: BAX ), Edwards Lifesciences ( NYSE: EW ), Tandem Diabetes Care ( NASDAQ: TNDM ), and Globus Medical ( NYSE: GMED ) as its bullish high conviction calls on Tuesday.

The four stocks are “now significantly out-of-consensus,” the analyst Matt Miksic argued, issuing Overweight recommendations for all four names.

It is rare for Barclays to simultaneously name this many stocks as its high-conviction out-of-consensus calls, a decision based on declining sentiment and Street downgrades following unanticipated events and periods of sharp volatility.

“We view the various events and risks affecting these names as being more than adequately discounted in these stocks at current levels,” Miksic wrote.

Barclays argues that both Baxter ( BAX ) and Tandem ( TNDM ) can either meet or exceed their 2023 outlook and issues $54 and $71 per share targets on the stocks, respectively.

The analysts’ bullish view on EW is based on a potential turnaround in the U.S. market for Transcatheter Aortic Valve Replacement (TAVR). “We expect the stock’s performance in 2023 to be driven primarily by improving U.S. TAVR growth,” Miksic opined, with a $94 target on the stock.

He issues a $75 per share target on Globus Medical ( GMED ), expecting the company’s planned merger with rival NuVasive ( NUVA ) to generate shareholder value and stock appreciation.

Read: Seeking Alpha contributor Long James details the pros and cons of the merger.

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