Cash flow seen as key for Baxter
18 January 2005
Goldman Sachs has downgraded Baxter
International (NYSE: BAX) to "in-line" from "outperform" but said it remains
"constructive" on the stock and did not alter its earnings estimates.
The research firm reiterated its fourth
quarter earnings forecast of 56 cents per share and said fair value for
Baxter shares remains at $38.
Goldman noted that "the primary risk to the
Baxter story" is whether executives can execute on its continued
restructuring. "Inability of the management to execute well on the
restructuring and/or meet earnings estimates consistently could derail some
of the investor confidence, which has been restored so far."