Wells Fargo Upgrades Becton, Dickinson and Company (NYSE: BDX) to Overweight

By Alex Lavoie6 Nov, 07:03From Financial Modeling Prep

Key points

Wells Fargo has upgraded Becton, Dickinson and Company (NYSE: BDX) to an Overweight rating, indicating expected outperformance.
The company's fiscal fourth-quarter results exceeded estimates, with revenue rising 5.4% to $5.27 billion and adjusted earnings up 27.3% to $4.15 per share.
Despite strong recent performance, shares fell 6.4% in pre-market trading due to investor concerns over fiscal 2027 guidance for low-single-digit revenue growth and adjusted earnings of $13.10–$13.30 per share.

Wells Fargo upgrades Becton, Dickinson and Company (NYSE: BDX) to Overweight, a rating that signals the bank expects the stock to perform better than the broader market. Becton, Dickinson and Company trades at $213.55 when the action is posted. The company makes medical products used by hospitals and health care providers.

The upgrade comes alongside a mixed picture for the stock. Becton, Dickinson and Company is up $4.36, or 2.08%, at $213.55, near its 52-week high of $214.78. Its 52-week low is $127.59. The available information does not state Wells Fargo’s reason for the upgrade.

Becton, Dickinson and Company’s fiscal fourth-quarter results beat estimates. Revenue rises 5.4% to $5.27 billion, above the $5.12 billion estimate, while adjusted earnings rise 27.3% to $4.15 per share. Adjusted earnings exclude certain costs to give investors another view of the company’s operating performance. Revenue grows across all four segments, led by 7.6% growth in Interventional.

Still, Becton, Dickinson and Company shares fall 6.4% in pre-market trading after the results, as highlighted by Zacks. Investors appear concerned about fiscal 2027 guidance for low-single-digit revenue growth and adjusted earnings of $13.10–$13.30 per share. Guidance is the company’s forecast, so it can affect the stock even when recent results beat estimates.

For the full fiscal year, Becton, Dickinson and Company reports revenue of $19.5 billion and adjusted earnings of $12.70 per share, as highlighted by PR Newswire. Cash from continuing operations rises 30% to $3.6 billion, while free cash flow rises 42.5% to $2.9 billion. Free cash flow is cash left after spending on equipment and other long-term assets.