
NYSE:ABT
This summary was created by AI, based on 14 opinions in the last 12 months.
Abbott Labs has faced significant challenges over the past year, with a drop of around 30% in stock value and lowered growth guidance leading to a struggle in maintaining investor confidence. Many experts acknowledge the company's high-quality status within the healthcare sector, emphasizing the potential long-term growth, especially following its recent acquisition aimed at enhancing cancer treatment capabilities. While some analysts are cautious due to current market conditions and recent performance, others remain optimistic about Abbott's diversified business model and reliable dividend, indicating that organic growth in various segments remains robust. Despite recent setbacks and technical weaknesses, there are signs that the company might be turning a corner, positioning it for future recovery. Overall, views on Abbott are mixed, with a blend of caution and praise for its overall quality.
Healthcare, as a sector, is neutral to tilting positively. Within that though, there are some industry groups that he likes, and some he doesn’t like. This one is in the subsector of medical devices, and is a great diversified player in that space. Their acquisition of St. Jude broadens their business and cardiovascular. Dividend yield of 2.4%. (Analysts’ price target is $48.)
Had owned this in the past. They made a number of acquisitions, so patience is required. Acquired St. Jude, which he had seen losing market share to Boston Scientific. One concern is that they bloated out their balance sheet for this acquisition. Trading at about 18X, so not terribly inexpensive. Also, there are still some balance sheet risk. If you are a long-term player, they have a proven ability to execute on their operations, and it will likely get re-rated.
The PFE-N non-patent drugs will be dilutive for earnings in the short term. She prefers either JNJ-N or ABT-N