Coming spinoff will enhance its outlook

Article Excerpt

On January 1, 2018, medical device maker Becton Dickinson acquired rival C.R. Bard (old New York symbol BCR) for $25 billion in cash and shares. Despite the benefits of this purchase, Becton’s shares have gained just 3% in the past year. That’s because hospitals have deferred many procedures to free up capacity for COVID-19 patients. However, demand should pick up now that the pandemic is easing. The company’s new plan to spin off its diabetes unit also adds to its long-term appeal. BECTON DICKINSON & CO., $240 is a spinoff buy. The company (New York symbol BDX; Manufacturing sector; Shares outstanding: 290.8 million; Market cap: $69.8 billion; Dividend yield: 1.4%; Takeover Target Rating: Medium; operates through three segments: Medical (51% of fiscal 2020 revenue) makes an array of devices for hospitals, doctors’ offices and other clients in health care; Life Sciences (27%) sells products for collecting and shipping specimens as well as equipment for detecting diseases; and Interventional (22%) makes stents,…

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