J.P. Morgan Analysts Reiterate Overweight Rating on Abbott Laboratories (ABT) and Raise Price Target Ahead of 3Q20 Earnings Release

Javier Frausto

On Friday, J.P. Morgan analysts reiterated their Overweight rating on Abbott Laboratories (ABT) while raising their price target from $110 to $125. The analysts give their insight on what they expect to see from 3Q20 results for Abbott Laboratories ahead of earnings season. They like MedTech and Diagnostic businesses combined with BinaxNow, Libre 3.0 and better Fx dynamics.

The analysts forecast 3Q20 revenue sales of $8.70B (+7.8% reported, +8.6%cc) and cash EPS of $0.92 (+9.4%). This is a bit higher than the Street forecast of $8.49B (+7.0%cc) and $0.90 EPS. Similar to the last quarter, better-than-expected COVID trends will work in Abbott’s favor. Medical Devices and Diagnostics is the main factor in representing most of upside given how consensus numbers haven’t moved for recent product announcements (i.e. Binax) and commentary.

J.P. Morgan analysts mentioned, “When combined with the tailwinds the company is seeing within diagnostics from its COVID-19 test approvals, we see the company as well positioned to both weather and even benefit from today’s healthcare environment.” This is a company doing well despite COVID-19 and only looks to improve during this pandemic.

BinaxNOW is a huge contributor to the Overweight reiteration as the analysts forecast the number of COVID-19 testing using BinaxNOW to grow to 50M in October and beyond. This can add up to $100M to top-line revenues and growth in the EPS for this quarter.

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Disclosure: At the time of publication, we have no positions in any of the securities mentioned in this article. We wrote this article ourselves, and it expresses our own opinions. We are not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.

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Comments (4)
No. 1-4
Emmanwo8
Emmanwo8

Abbott has been a great contributor with helping with COVID

kperkins2
kperkins2

Abbott looks promising!

Nikhil Gunderia
Nikhil Gunderia

I hope this growth stays after COVID ends

JPotts
JPotts

This company is only going to get better.