10:46 AM EDT, 09/25/2025 (MT Newswires) -- Becton, Dickinson and Company ( BDX ) executing a $17.5 billion transaction, under which the company is spinning off and merging its Biosciences and Diagnostics businesses with Waters (WAT), could unlock value, said RBC in a Thursday note.

The company is positioning itself for its next growth phase, RBC said, adding that the new life science tools and diagnostics company could drive upside for the shareholders with about $345 million in annualized earnings before interest, taxes, depreciation, and amortization synergies by year five.

The new company is poised for 3% to 3.5% year-on-year organic growth in fiscal 2026 and operating margins similar to 2025 that may limit earnings per share growth in the year, with more consistent high single-digit growth expected in fiscal 2027 and beyond, RBC said.

The firm initiated coverage on Becton, Dickinson and Company ( BDX ) with a sector perform and $211 price target.

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