Baxter expects to generate cash flow from operations of $3.5B Expects FY14 CapEx $1.8B, which includes Gambro in the investments. Sees FY14 R&D to grow in mid single digits and SG&A to grow in mid to high single digits. Sees FY14 tax rate of 231.5%. Expects FY14 Medical Products sales growth of 13%-14%. Expects FY14 Fluid Systems sales to decline 3%-5%. Expects sales growth for BioScience to reach 3%-4%. Comments taken from Q1 earnings conference call.
Baxter still undervalued heading into split, says Leerink Leerink its sum-of-the-parts analysis indicates Baxter shares remain undervalued heading into the company's split. The firm reiterates an Outperform rating on the name with a slightly reduced price target of $82.