Hill-Rom stock falls after BofA downgrade, extending pullback following longest win streak in 20 years

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Shares of Hill-Rom Holdings Inc. HRC, -2.29% slumped 2.1% in afternoon trading Tuesday, putting them on track for a fifth straight decline, after BofA Securities analyst Bob Hopkins downgraded the medical technology company to neutral from buy, citing concerns over valuation after the recent run up. Before the stock's current loss streak, in which it has shed 8.3%, the stock had shot up 21.1% amid a 13-day win streak to the Aug. 3 record close of $138.73, the longest stretch of gains since the 14-day run that ended Feb. 13, 2001. That rally was helped on by reports that Baxter International Inc. BAX, -0.20% was in talks to buy the company, with The Wall Street Journal reporting that Hill-Rom had already rejected a $144-per-share bid. Hopkins reiterated his $130 stock price target, which values Hill-Rom on a standalone basis, and is just 2.2% above current levels. Hill-Rom's stock has rallied 29.9% year to date, while Baxter shares have lost 7.8% and the S&P 500 SPX, +0.10% has gained 18.2%.

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