Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 13, 2023

Article Excerpt

BAXTER INTERNATIONAL INC., $44.84, New York symbol BAX, is a buy. The company makes a wide range of medical devices, including intravenous pumps and kidney-dialysis equipment. Baxter now plans to spin off its Renal Care and Acute Therapies businesses as a separate, publicly traded company. In 2021, this new kidney care company had revenue of $4.86 billion, or 38% of Baxter’s total revenue of $12.78 billion. The company has not yet announced the details of the transaction. However, investors will not be liable for capital gains taxes until they sell their new shares. It expects to complete the spinoff in 2024. Baxter is also conducting a strategic review of its BioPharma Solutions business, which provides contract manufacturing services to the healthcare industry. This could lead to its sale or merger with another firm. The remaining operations will focus on making specialized equipment for hospitals. That includes Hill-Rom Holdings Inc., which Baxter acquired in late 2021 for $10.5 billion. Based in Chicago, Hill-Rom makes a variety of…