With a market cap of $15.6 billion, Baxter International Inc. (BAX) is a global healthcare company that specializes in medical products and therapies, with a strong focus on renal care, medication delivery, and pharmaceuticals. Headquartered in Deerfield, Illinois, the company provides a wide range of healthcare solutions for hospitals, clinics, and home care settings worldwide.

Shares of BAX have lagged behind the broader market over the past 52 weeks. BAX has decreased 17% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.6%. However, Baxter International stock has risen 3.9% on a YTD basis, outpacing SPX's 4.4% decline.

Looking closer, the medical products maker has underperformed the Health Care Select Sector SPDR Fund's (XLV) 4.1% drop over the past 52 weeks.

Despite Baxter’s stronger-than-expected Q1 2025 adjusted EPS of $0.55 and revenue of $2.6 billion, shares fell 1.6% on May 1. The company incurred $98 million in Hurricane Helene-related costs, highlighting operational vulnerabilities, especially at its North Cove facility, which supplies 60% of U.S. IV fluids. While Baxter raised the lower end of its 2025 EPS guidance from $2.45 to $2.47, the upper end remained unchanged at $2.55.

For the current fiscal year, ending in December 2025, analysts expect BAX’s EPS to grow 32.3% year-over-year to $2.50. The company’s earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters. 

Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, nine “Holds,” and one “Moderate Sell.” 

This configuration is more bullish than three months ago, with two “Strong Buy” ratings on the stock.

On May 2, Stifel lowered its price target on Baxter International to $36 while maintaining a “Buy" rating, citing solid Q1 results. Baxter reported better-than-expected sales of $2.6 billion, marking its ninth consecutive quarter of meeting or exceeding expectations.

As of writing, BAX is trading below the mean price target of $36.89. The Street-high price target of $44 implies a modest potential upside of 45.2% from the current price levels.