Citi Raises Becton Dickinson Price Target to $198 after $4B Sale Update
Citi boosted Becton Dickinson’s price target to $198 from $185.70 after modeling the $4 billion Life Sciences sale that will fund $2 billion in share buybacks and $2 billion in debt reduction. In fiscal Q1 2026, revenue hit $5.3 billion, with adjusted EPS of $2.91 and gross margin at 53.4%.
1. Price Target Revision
Citi analyst Joanne Wuensch lifted her price target on Becton Dickinson to $198 from $185.70 and maintained a Buy rating. The increase reflects updated financial models that incorporate the closing of the Life Sciences sale.
2. Fiscal Q1 2026 Performance
Becton Dickinson reported revenue of $5.3 billion in fiscal Q1 2026, marking 0.4% overall growth and 2.5% growth in the New BD segment. Adjusted gross margin rose to 53.4% while adjusted EPS reached $2.91, driven by robust momentum in biologic drug delivery, advanced tissue regeneration and pharmacy automation.
3. Life Sciences Sale and Capital Allocation
The company is set to complete a Reverse Morris Trust deal combining its Life Sciences unit with Waters Corporation, generating $4 billion cash proceeds. Of this, $2 billion will fund share repurchases and $2 billion will reduce debt, aligning with a sharpened capital allocation strategy under the “Excellence Unleashed” agenda.