Abbott Laboratories (ABT) is set to release its 4Q15 and full year earnings results on January 28, 2016. In a Bloomberg survey of 24 brokerage firms, as recorded on January 18, 2016, about 70.8% of firms have rated Abbott Laboratories a “buy,” and 29.2% of firms have rated the company a “hold.” No firms gave it a “sell” rating.
The table above lists the 15 brokerage firms that provided a target price for Abbott Laboratories over the next 12 months. The consensus 12-month target price for Abbott Laboratories was $51.4, amounting to a 26.9% return, compared to the company’s price of $40.5 on January 15, 2016.
Abbott’s share price movement
As of January 15, 2016, Abbott Laboratories’ stock was trading 3.8% above its 52-week low and 20.8% below its 52-week high. Abbott Laboratories’ stock has fallen approximately 6.8% over the last year. The company’s stock performance has remained weak over the past year due to weak investor sentiment driven by currency headwind. This has the potential to impact the company’s financials, as does economic turbulence in emerging markets, which account for approximately 50% of the company’s total sales. However, the company continues to exhibit strong fundamentals including strong revenue, high gross profit margin and net income, a diversified product portfolio, and a wide geographic reach with operations across more than 150 countries.
Investors seeking focused exposure to Abbott Laboratories can invest in the iShares U.S. Medical Devices ETF (IHI), which tracks the Dow Jones U.S. Select Medical Equipment Index with exposure to the major US medical technology companies. Abbott Laboratories accounts for 10% of IHI, whereas leading medical device players Medtronic (MDT), Stryker (SYK), and Becton, Dickinson and Company (BDX) account for 14.5%, 5.5%, and 5.7%, respectively, of IHI’s holdings.