Abbott a new overweight at Piper Sandler; at attractive entry point
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Contributor since / Followers
Contributor since / Followers
3 months ago
narvikk
- Piper Sandler has initiated Abbott Laboratories (NYSE:ABT) at outperform saying that while shares have underperformed so far this year, the current valuation makes it a good time to buy.
- The firm has a price target of $131 (14% upside based on Sept. 19 close).
- Analyst Adam Maeder said that while the stock’s performance has underwhelmed due to litigation over bowel disease caused by allegedly tainted Abbott baby formula products, he doesn’t see much top-line risk associated with this, adding that the Street is likely pricing in damages related to the cases.
- He added he sees a path forward for durable top-line growth and is poised for double-digit adjusted EPS growth in 2025 and beyond.
- “We couple this financial profile with a consistent dividend and solid past track record in recessionary environments and, ultimately, we see a versatile large-cap name that’s undervalued,” Maeder wrote.