Analysts’ recommendations for Abbott Laboratories
In this part, we’ll take a look at Wall Street analysts’ recommendations and target prices for Abbott Laboratories (ABT) stock over the next year. Based on the recommendations of 20 brokerage firms in a Bloomberg survey, 75% rated Abbott Laboratories as a “buy,” 25% rated the company as a “hold,” and none of the firms rated Abbott Laboratories as a “sell.”
The above table lists the 11 brokerage firms that provided a target price for Abbott Laboratories for the next 12 months. As of October 24, 2016, the consensus 12-month target price is $47.5. It amounts to an ~17.3% return potential—compared to Abbott Laboratories’ price of $40.5 on October 23, 2016.
On October 20, 2016, UBS gave Abbott Laboratories a one-year target price of $43—the lowest target price. The target implies a 6.2% return over the next 12 months. Among the other large investment banks, Morgan Stanley gave Abbott Laboratories a one-year target price of $45. It implies an ~11.1% return potential over the next 12 months. Jefferies gave the stock its highest one-year target price of $49.5. It implies a return of ~22.2%.
Peers Boston Scientific (BSX), Thermo Fisher Scientific (TMO), and Medtronic (MDT) have average broker target prices of $27.6, $174.6, and $94.7, respectively. These figures imply returns of 20.2%, 14.1%, and 13.7%, respectively, in the next 12 months.
Investors can get diversified exposure to Abbott Laboratories by investing in one of the largest dividend ETFs—the Vanguard Dividend Appreciation ETF (VIG). VIG has 1.5% of its total holdings in Abbott Laboratories.