Baxter faces class action lawsuit amid product defects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 28 2025
0mins
Should l Buy BAX?
Source: Globenewswire
Baxter International Inc (BAX) saw a price increase of 3.00%, reaching a 20-day high. This movement occurs amid broader market weakness, with the Nasdaq-100 down 0.27% and the S&P 500 down 0.13%.
The stock's rise comes despite significant legal challenges, as Baxter is facing a class action lawsuit over systemic defects in its Novum LVP devices. The lawsuit alleges that these defects pose serious risks to patients, potentially leading to severe consequences for the company's sales and reputation. Investors are concerned about the implications of this lawsuit, which could lead to increased regulatory scrutiny and legal liabilities for Baxter.
The ongoing legal issues may overshadow the stock's recent performance, indicating that while the price has risen, investor sentiment remains cautious due to the potential financial and reputational impacts of the lawsuit.
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Analyst Views on BAX
Wall Street analysts forecast BAX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAX is 21.73 USD with a low forecast of 15.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 21.770
Low
15.00
Averages
21.73
High
30.00
Current: 21.770
Low
15.00
Averages
21.73
High
30.00
About BAX
Baxter International Inc. is a global medtech company. Its segments include Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals. The Medical Products and Therapies segment includes sales of its sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant, and adhesion prevention products. The Healthcare Systems and Technologies segment includes sales of its connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices, and advanced equipment for the surgical space, including operating room integration technologies, precision positioning devices, and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia, and drug compounding. It provides a portfolio of diagnostic, critical care, nutrition, hospital and surgical products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Poor Financial Performance: The company has faced inconsistent revenue and has reported losses, with its stock price plummeting approximately 75% over the past five years, raising concerns about its future performance, particularly following the dividend cut.
- Demand Outlook: Despite the challenges, Baxter's medical products are expected to see sustained demand due to the aging population, which is likely to drive future growth in the healthcare sector, highlighting the necessity of its offerings.
- Valuation Appeal: Following a significant price decline, Baxter's price-to-sales and price-to-book ratios are both below their five-year averages, and while losses render the price-to-earnings ratio unusable, the forward P/E is also below its long-term average, indicating potential investment value.
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- Participation Details: Participants are required to pre-register via the provided link to receive call information, ensuring that investors can smoothly join and stay updated on the latest company developments.
- Webcast Availability: The conference call will also be webcast on Baxter's website, allowing investors who cannot join by phone to listen to the meeting live, thereby enhancing transparency and information dissemination.
- Company Overview: With nearly a century of experience in the medtech field, Baxter is committed to providing medical devices and advanced injectable technologies, supported by approximately 38,000 employees, highlighting the company's significant role and impact in global healthcare.
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- Industry Outlook: As the earnings season progresses, market attention on healthcare stocks, particularly those with weak earnings momentum, may trigger broader industry adjustments and shifts in investment strategies.
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