Becton, Dickinson and Company Building a $200M High-Tech Manufacturing Plant in Spain
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 in the year. Upon completion, the company will have four plants in the country.
Covering 86,000 square feet, the high-tech facility will initially house 150 personnel. There are plans to expand it to 323,000 square feet, consequently creating 600 jobs by 2030. The facility will be constructed according to sustainability and eco-efficiency standards.
Intelligent and autonomous technologies will be integrated into the high-tech manufacturing facility. The facility will be used to produce drug-delivery devices as Becton Dickinson looks to strengthen its prospects in the high-growth pre-filled syringe business. Drug delivery devices produced in the facility will be sold to pharmaceutical companies in the European Union.
“This new plant will also add needed capacity to support major vaccination campaigns, such as the one currently taking place in response to the COVID-19 pandemic,” said Eric Borin, BD Pharmaceutical System’s Worldwide President.
The upcoming manufacturing facility is part of BD’s $1.2 billion 4-year investment plan which was announced last year. The medical technology company is in the process of following its plan on upgrading its manufacturing capacity and technology of pre-filled syringes and drug delivery devices. (See Becton Dickinson stock analysis on TipRanks
Leerink Partners analyst Richard Newitter
has reiterated a Hold rating on the stock. According to the analyst, there are other large-cap offerings with greater upward estimate revision and better stock upside potential.
Newitter stated, “There was a lot to unpack this quarter, not to mention a surprise Diabetes spin-off announcement, but ultimately we think the main reason the stock came under pressure was due to FY22 EPS uncertainty.”
The analyst has cut the price target to $260 from $270, implying 7.36% upside potential to current levels.
Consensus among analysts on Wall Street is a Moderate Buy based on 3 Buy and 2 Hold ratings. The average analyst price target of $271.25
implies 12% upside potential to current levels.
BDX scores a 5 out of 10 on TipRanks’ Smart Score
rating system, implying its performance is likely to align with market averages.
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