Becton, Dickinson and Company (BDX) have confirmed a $ 200 million investment in a new high-tech manufacturing facility in Spain. Construction of the new plant in Zaragoza will begin later this year. Upon completion, the company will have four plants in the country.
The high-tech facility will initially accommodate 150 employees on an area of ââ86,000 square meters. It is planned to expand it to 323,000 square meters and thus create 600 jobs by 2030. The facility will be built according to sustainability and eco-efficiency standards.
Intelligent and autonomous technologies are being integrated into high-tech manufacturing. The facility will be used to manufacture drug delivery devices as Becton Dickinson seeks to strengthen its prospects in the high-growth prefilled syringe business. Drug delivery devices manufactured in the facility are sold to pharmaceutical companies in the European Union.
“This new facility will also add the capacity to support critical vaccination campaigns such as those currently taking place in response to the COVID-19 pandemic,” said Eric Borin, Worldwide President of BD Pharmaceutical Systems.
The upcoming manufacturing facility is part of BD’s $ 1.2 billion 4-year investment plan announced last year. The medical technology company is currently pursuing a plan to modernize its manufacturing capabilities and technology of prefilled syringes and drug delivery devices. (See Becton Dickinson stock analysis on TipRanks)
Leerink Partners analyst Richard Newitter has confirmed a hold rating for the stock. According to the analyst, there are other large-cap offerings with a stronger upward revision of estimates and better upside for stocks.
Newitter said, “There’s been a lot of unpacking this quarter, not to mention the surprise announcement of a diabetes spin-off, but ultimately we believe the main reason the stock came under pressure was because of the uncertainty in FY22 EPS . “
The analyst has cut the price target from $ 270 to $ 260, implying an upside potential of 7.36% to current levels.
The consensus among analysts on Wall Street is a moderate buy based on 3 buy and 2 hold ratings. Analysts’ average target price of $ 271.25 implies 12% upside to current levels.
BDX scores 5 out of 10 on TipRanks’ Smart Score rating system, which means its performance is likely to be in line with the market average.
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