Morgan Stanley Highlights Positive Outlook for Becton, Dickinson (BDX) and the MedTech Sector

Group 1: Company Overview - Becton, Dickinson and Company (NYSE:BDX) is an American multinational medical technology company that manufactures and sells essential medical devices and related products [5] Group 2: Financial Performance - In fiscal Q4 2025, Becton, Dickinson reported overall revenues of $5.9 billion, reflecting an 8.3% growth year-over-year [4] - The company reported cash and cash equivalents of $641 million and an operating cash flow of $3.4 billion in 2025 [4] - Becton returned $2.2 billion to investors through dividends and share repurchases, demonstrating its commitment to shareholder value [4] Group 3: Mergers and Acquisitions - The merger of Becton, Dickinson's Biosciences and Diagnostic Solutions, referred to as New BD, with Waters Corporation is expected to be completed around the end of the first quarter of 2026 [3] - New BD is projected to be a significant MedTech company with a broad impact on patients and healthcare globally [3] Group 4: Analyst Insights - Morgan Stanley analyst Patrick Wood raised the price target for Becton, Dickinson to $210 from $197, maintaining an Overweight rating, citing a positive outlook for the MedTech sector [2] - The analyst noted that major product cycles, healthier hospital spending, and low valuations indicate a supportive environment for the industry in the upcoming year [2] Group 5: Revenue Growth - New BD reported revenue of $17.5 billion in FY25, an increase from $16.8 billion in the previous year [3]