Blood in the Water
Baxter International is a global, diversified healthcare company. Baxter develops and manufactures products for hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions. Baxter manufactures products in 27 countries and sells the products in more than 100 countries.
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This company stands out as one of the best in the pharma business as evidenced by their steady upward progression in EPS. This is a good quality company with great prospects. Bloomberg reports that the average analyst target is $81.23.
Purple Chips 12 -18 month target: $77.00
LOW VALUATION IN BAXTER AT $67.67 (BAX-US, $67.40) FULL POSITION
PURPLE CHIPS TARGET: $77.00 POSITION SIZE: FULL (5.0%) P/E: 13.7X DIV: $2.08 (3.1%) MKT CAP: $36B Debt: $7B RETURN ON CAPITAL: 27.8% EARNINGS YIELD: 7.6% 5 YR EPS Growth rate*:7.07% P/E/G Ratio: 1.95X 2014 EPS: $4.90 2015 EST.: $5.37 2016 EST.: $5.78
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
