Embecta (Nasdaq:EMBC), the BD diabetes business spinoff, may take a few years to move into a growth phase, analysts say.
BTIG analysts Marie Thibault and Sam Eiber wrote a report labeling Embecta as a “Neutral” option on the market. BD initially announced it would spin off its diabetes business in 2021, finally completing the move in April 2022.
The company’s first quarterly results as a spinoff inspired early confidence, beating the consensus forecast on Wall Street. However, the analysts aren’t jumping at the stock too soon.
“We expect this to be a multi-year transition from a value story to a growth play,” Thibault and Eiber wrote.
Get the full story at our sister site, Drug Delivery Business News.