This spinoff is just getting started

Article Excerpt

Medical device maker Becton Dickinson completed the spinoff of its diabetes-products business (embecta) in April 2022. Investors received one share of embecta for every five common shares of Becton they held. So far, the new firm is down 16%, while the former parent in down 10%. That’s typical for recent spinoffs as investors adjust their expectations for both firms. We still like the outlook for both, particularly embecta. Its moderate market cap makes it a highly attractive takeover target. BECTON DICKINSON & CO. $238 is your #1 Spinoff Buy for 2022. The company (New York symbol BDX; Manufacturing sector; Shares outstanding: 285.2 million; Market cap: $67.9 billion; Dividend yield: 1.5%; Takeover Target Rating: Medium; www.bd.com) operates through three segments: Medical makes an array of devices for hospitals, doctors’ offices and other clients in health care; Life Sciences sells products for collecting and shipping specimens as well as equipment for detecting diseases; and Interventional makes stents, catheters, needles, incontinence devices, and surgical tools. In its fiscal 2022 third…

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