Baxter International Inc

BAX: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$41.00	Bzfmqmq	Dpzvwsd

Baxter Earnings: Legacy Hill Rom Woes Overshadow Rising Medical Utilization and 2024 Outlook

Julie Utterback

May 2, 2024

Narrow-moat Baxter turned in strong first-quarter results, and management raised its expectations for 2024 on those trends. However, a mild increase to our near-term expectations does not materially change our $67 fair value estimate. Shares remain steeply undervalued, in our opinion, and May 2's share decline appears related to disappointment that the legacy Hill Rom assets constrained this quarter's results that were otherwise strong on rising medical utilization and a cooling inflationary environment.

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