Analysts Are Downgrading These 5 Stocks

4. Baxter International Inc. (NYSE:BAX)

Number of Hedge Fund Holders: 42

Morgan Stanley downgraded Baxter International Inc. (NYSE:BAX) from “Overweight” to “Equal-Weight” on Friday, January 6. Analyst Drew Ranieri expects the healthcare company to benefit from the Hillrom deal in the longer run. However, he acknowledged that he failed to estimate the impact that macroeconomic factors would have on Baxter’s legacy business.

Ranieri also expressed concerns over little clarity around the company’s business while going forward. In addition, he cut his price target for Baxter International Inc. (NYSE:BAX) from $70 per share to $55 per share.

Meanwhile, Baxter International Inc. (NYSE:BAX) recently disclosed plans to spin off its renal care segment into a separately listed company. It is also exploring strategic alternatives for its biopharma solutions unit.

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