Top 5 Stock Picks of Rob Cope’s Columbus Point

In this article, we discuss the top 5 stock picks of Rob Cope’s Columbus Point. If you want to read our detailed analysis of Cope’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Rob Cope’s Columbus Point.

5. Becton, Dickinson and Company (NYSE:BDX)

Columbus Point Stake Value: $13,999,000
Percentage of Columbus Point’s 13F Portfolio: 6.66%
Number of Hedge Fund Holders: 51

Becton, Dickinson and Company (NYSE:BDX) specializes in medical technologies.

In December, Piper Sandler analyst Jason Bednar downgraded Becton, Dickinson and Company (NYSE:BDX) to “Neutral” from “Overweight” with a price target of $260, down from $285. Over the next six months, the analyst anticipates a lack of events for shares, as well as lingering doubts about Becton, Dickinson and Company’s (NYSE:BDX) ability to meet consensus profitability expectations later this year.

In its second-quarter 2021 investor letter, Madison Funds mentioned Becton, Dickinson and Company (NYSE:BDX). Here is what the fund said:

“Becton, Dickinson and Company (“BD”) is one of the world’s largest medical supply, devices, laboratory equipment, and diagnostic products manufacturers. We like BD because it is a leader in the medical and life science industries with a durable mid-single digit growth profile and attractive returns on capital. They generate about 85% of revenue from consumables and 15% from equipment, and each year, they manufacture billions of needles,

syringes, catheters, tubes, and medical devices which results in significant economies of scale that can be matched by few competitors. Their Life Sciences segment produces products that provide diversity in the steadily growing diagnostic testing and life sciences research fields.

Regarding the short-term issues, it’s been a challenging past 18 months for the company. In February 2020, they announced the FDA required an updated 510(k) clearance for their Alaris infusion pump. As a result, BD had to suspend selling new pumps until the updated regulatory filing received FDA clearance. In addition to the regulatory headwind, BD’s business was negatively impacted by the COVID-19 pandemic as individuals postponed doctor office visits and hospitals deferred non-emergency medical procedures. We believe these postponements are just now normalizing. Lastly, while BD’s Life Sciences business swiftly brought COVID-19 tests to market, there is uncertainty over the magnitude and duration of these revenues.…” (Click here to see the full text)