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What Analysts Expect for Abiomed

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Wall Street analysts’ estimates

Wall Street analysts estimate Abiomed (ABMD) will report 29.9% growth in revenues to ~$771.0 million in 2019 as compared to $593.7 million in 2018. The earnings per share are expected to be $4.66 in 2019. Analysts estimate the net income margin to increase to 27.3% during 2019 as compared to 18.9% during 2018.

The above chart compares changes in analysts’ recommendations for Abiomed since January 2018.

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2019 guidance

Abiomed estimates revenues to be between $755 million and $770 million during 2019, a 27% to 30% increase in revenues as compared to 2018. The operating margin is expected to be in the range of 28% to 30% in 2019.

Analyst ratings

Abiomed’s stock price has increased by nearly 172.3% in the last 12 months and nearly 119.5% in 2018 year-to-date. Analysts estimate the stock might increase by 9.2% over the next 12 months. Wall Street analysts have a 12-month target price of $449.22 per share as compared to the last price of $411.36 per share as of September 4.

As of September 5, 11 analysts are tracking Abiomed. Of these, five analysts recommend a “strong buy,” four analysts recommend a “buy,” and two analysts recommend a “hold.” None of the analysts recommend a “sell.” The consensus rating for Abiomed stands at 1.73, which represents a “strong buy” for long-term growth investors as well as momentum investors. Changes in analysts’ estimates and recommendations are based on changing trends in stock prices and the performance of the company.

The iShares US Medical Devices ETF (IHI) holds 2.3% of its total investments in Abiomed (ABMD), 4.7% in Stryker (SYK), 4.7% in Boston Scientific (BSX), and 8.8% in Medtronic (MDT).

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