BAX - Broyhill - Baxter International: Renal Care Spin-Off And Recent Revamp Should Provide Catalysts

2024-02-23 10:45:00 ET

Summary

• Medical equipment and device manufacturer Baxter International was another Ozempic casualty.
• BAX slid 15% the day Novo Nordisk concluded trials showing Ozempic  slowed the progression of chronic kidney disease.
• The multiple on BAX collapsed from the mid-20s towards the single digits.
• With shares trading at a trough multiple on depressed earnings, we see much room for upside surprises.

The following segment was excerpted from this fund letter.

Baxter International ( BAX )

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