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Abbott on the Street: Analyst Recommendations

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Analyst ratings and recommendations

Abbott Laboratories (ABT) registered strong 3Q17 results, surpassing the Wall Street estimates for both sales and earnings and reporting healthy growth across all of its business segments, with medical devices contributing to the majority of sales.

The St. Jude Medical acquisition added significantly to the company’s medical device segment sales. Abbott’s stock ratings and recommendations were revised after the stellar earnings results.

According to the latest recommendations of 20 brokerage firms surveyed by Reuters, ABT stock has been given “buy” recommendations from 13 (~65%) of its analysts, while seven (~35%) analysts recommend a “hold” on the stock. None of the Wall Street analysts provided a “sell” rating.

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Target price on ABT stock

As of November 20, 2017, the analysts’ consensus target price for ABT stock is $61.5, which represents a ~10.6% return potential on an investment over the next 12 months, based on ABT stock’s closing price of $55.6 on November 17.

Thermo Fisher Scientific (TMO), Baxter International (BAX), and Zimmer Biomet Holdings (ZBH) have average 12-month analyst target prices of $219.1, $67.9, and $130.9, respectively. These target prices imply average 12-month returns of 15.2%, 6.3%, and 17.3%, respectively.

Upgrades and downgrades

On October 19, 2017, BMO Capital reiterated its “market perform” rating on Abbott Laboratories. On the same day, Jefferies restated its “buy” rating on the stock, with a target price of $165 per share. CitiGroup maintained its “neutral” rating according to a report published on October 19, 2017.

Jefferies also provided future earnings estimates for Abbott in a research report published on November 1, 2017. According to Jefferies, Abbott will post fiscal 2017 EPS (earnings per share) of ~$2.49. Its 4Q17 EPS estimate is ~$0.72, and its 1Q18 EPS estimate is $0.58.

Notably, the Vanguard Value ETF (VTV) has ~0.82% of its total holdings in ABT.

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