Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, TD Cowen reaffirmed its confidence in Abbott Laboratories (NYSE:ABT) stock, maintaining a Buy rating and a $130.00 price target for the company's shares traded on the New York Stock Exchange under the ticker NYSE:ABT. The firm's outlook is based on expectations that Abbott will deliver strong second-quarter results, aligning with its 2024 guidance projections.
Abbott's recent performance has been bolstered by the introduction of multiple new products, which have contributed to the company's growth alongside its three major revenue drivers. Additionally, Abbott is making a comeback in the U.S. baby formula market, a sector in which it had previously lost ground.
The company is also experiencing positive momentum from reduced costs and an improved product mix, which are expected to drive margin improvements. While there is ongoing litigation related to necrotizing enterocolitis (NEC) that continues to loom over the company, TD Cowen believes that the associated risks are more contained than the recent decline in Abbott's stock price might indicate.
The analyst's statement underscores a belief in Abbott's capacity to manage the current challenges effectively. The company's strategic advancements, particularly in product development and market re-entry, are seen as key factors in sustaining its growth trajectory through the approaching quarters.
In other recent news, Abbott Laboratories is currently facing a trial regarding allegations that its baby formula for preterm infants is linked to a dangerous bowel disease.
Concurrently, the company has been receiving positive feedback from analysts. TD Cowen has maintained a Buy rating and a $130.00 price target for Abbott, and other firms including BTIG, Goldman Sachs, and Citi have also issued Buy ratings.
In terms of product development, Abbott has announced the 402nd consecutive quarterly dividend of 55 cents per share, demonstrating its ongoing commitment to shareholders.
The company has also expanded its product portfolio with the FDA clearance of two new over-the-counter continuous glucose monitoring systems, Lingo and Libre Rio. These innovations are expected to complement existing product offerings and enhance the company's competitive position in the market. Abbott's commitment to advancing technology in diabetes care is further underscored by the addition of ketone monitoring features to its product pipeline.
Despite these positive developments, Abbott is also facing nearly 1,000 lawsuits related to its cow's milk-based formulas for premature infants. These lawsuits are separate from other ongoing legal issues Abbott faces regarding the 2022 shutdown of its Sturgis, Michigan, plant and a baby formula recall. These recent developments highlight a period of both challenges and advancements for Abbott Laboratories.
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