Cash flow seen as key for Baxter International

18 January 2005

Goldman Sachs has downgraded Baxter International (NYSE: BAX) to "in-line" from "outperform" but said it remains "constructive" on the stock and did not alter its earnings estimates.

The research firm reiterated its fourth quarter earnings forecast of 56 cents per share and said fair value for Baxter shares remains at $38.

Goldman noted that "the primary risk to the Baxter story" is whether executives can execute on its continued restructuring. "Inability of the management to execute well on the restructuring and/or meet earnings estimates consistently could derail some of the investor confidence, which has been restored so far."



To top