Bank of America Maintains a Hold Rating on Baxter International (BAX)

Core Viewpoint - Baxter International Inc. is identified as one of the best mid-cap value stocks to buy in 2026, with a current Hold rating and a price target of $24 from Bank of America Securities [1]. Group 1: Analyst Ratings and Outlook - The S&P downgraded its outlook on Baxter from Stable to Negative, indicating the need for the company to avoid further guidance cuts and show stronger operational performance for a more positive rating [2]. - The revised outlook from S&P assumes only modest improvements in leverage, alongside a gradual recovery in growth, margins, and cash generation [2]. Group 2: Financial Metrics and Risks - Baxter's free cash flow metrics are below those of BBB- rated peers, contributing to the Hold rating [3]. - There are ongoing risks related to cost-cutting actions and product challenges, such as the Novum product line [3]. - Key inflection points for the company are not expected until 2026-2027, leading to a balanced risk-reward outlook in the near term [3]. Group 3: Company Overview - Baxter International Inc. is a global medtech company that focuses on essential healthcare products for hospitals, surgery, and critical care, operating through three main segments: Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals [4].