Abbott Laboratories (ABT) - Get Report received target-price decreases from analysts after cutting its profit forecasts on reduced COVID testing, but they remain bullish overall on the healthcare products giant.
The stock recently traded at $107.11, up 1.25%. It has dropped 2.2% over the past six months, after plummeting 9% on Tuesday following the profit forecast reduction.
As for the analysts, Morgan Stanley’s Cecilia Furlong lowered her price target to $126 from $140 but left her rating at overweight.
“While the post-COVID Dx [diagnosis] earnings void comes sooner than forecast, and while expectations will reset, reinvestment opportunities remain meaningful,” she said. “Base business trends are positive on recovery.”
Barclays’ Travis Steed trimmed his price target to $125 from $150, keeping his overweight rating.
“ABT has now de-risked COVID testing from the numbers,” he said. “The focus can now turn to the solid base business which is growing revenue double digits in April 2021 vs. April 2019. ABT has one of the best pipelines in med-tech.”
Credit Suisse’s Matt Miksic similarly reduced his target to $120 from $133, keeping his outperform rating.
“We continue to expect ABT’s underlying business to emerge from the pandemic driving 7-9% underlying sales growth and double-digit EPS growth,” he said.
TheStreet.com founder Jim Cramer offered his thoughts on Abbott Labs in April, after the company reported adjusted profit of $1.32 a share for the first quarter, doubling the 65-cent tally from last year.