Abbott stock rating reiterated at Outperform by Oppenheimer following CMS decision

Investing.com - Oppenheimer has reiterated an Outperform rating and $14.00 price target on Abbott Laboratories (NYSE:ABT) following the Centers for Medicare & Medicaid Services’ (CMS) final decision on transcatheter edge-to-edge repair for the tricuspid valve (T-TEER).

The final CMS decision, posted Wednesday, contains slight differences from the previously proposed decision memo. Notable changes include the elimination of requirements for an electrophysiologist and multi-modality imaging specialists, while clarifying that patient consultation with all team members is not mandatory. According to InvestingPro, Abbott maintains excellent financial health with a GREAT overall score, supporting its ability to capitalize on regulatory developments. InvestingPro offers 12 additional key insights about Abbott’s market position and growth potential.

The T-TEER coverage determination shares similarities with Edwards Lifesciences (NYSE:EW)’ transcatheter tricuspid valve replacement (TTVR) national coverage determination (NCD), though Abbott’s includes additional subgroup analyses for patients with greater than mild right ventricular dysfunction, hepatic dysfunction, and grade of post-repair residual tricuspid regurgitation.

Most public commenters expressed support for T-TEER coverage, citing improved quality of life and limited treatment alternatives. Despite some concerns over TRILUMINATE’s lack of mortality benefit and procedural risks, CMS found sufficient evidence to allow Coverage with Evidence Development (CED).

CMS maintained flexible optimal medical therapy definitions aligned with FDA labeling without specifying tricuspid regurgitation severity requirements, and declined to impose volume or resource requirements despite mixed stakeholder views on volume criteria.

In other recent news, Abbott Laboratories has announced its quarterly dividend of 59 cents per share, continuing its long-standing tradition of dividend payouts. The company has also received FDA approval for its Tendyne transcatheter mitral valve replacement system, which offers a new treatment option for patients with severe mitral annular calcification. Meanwhile, Abbott’s FreeStyle Libre continuous glucose monitoring technology has shown a significant reduction in heart-related hospitalizations for diabetes patients, according to recent REFLECT studies. These studies indicate an 80% reduction in cardiovascular disease-related hospitalizations for Type 1 diabetes patients using the Libre system. Oppenheimer has maintained its Outperform rating for Abbott, with a price target of $140, citing optimism about the company’s Volt system and upcoming glucose-ketone monitoring technology. Piper Sandler noted Abbott as a key beneficiary in the growing continuous glucose monitoring market, highlighting its position as a favorite large-cap name in the sector. These developments underscore Abbott’s ongoing advancements in medical technology and its impact on diabetes care.

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