Deutsche Bank Upgrades Abbott Laboratories

On Wednesday, analysts at Deutsche Bank upgraded shares of Abbott Laboratories ABT from Hold to Buy and raised the price target from $42 to $54.

Kristen Stewart offered reasons for the upgrade.

Following a meeting with Abbott’s management, Deutsche Bank analysts "walked away with greater confidence that the recent and upcoming portfolio actions positions the company for the level of growth it has aspired to post the spin of AbbVie—that is mid-to-upper single digit sales and double-digit EPS growth."

Moreover, "We believe Abbott can sustain mid-to-high single digit sales growth and 10%-12% EPS growth. Given this, its balance sheet and cash flows, we believe the stock should trade at a premium valuation and there is significant upside from< current levels."

Shares of Abbott closed Tuesday’s session at $42.50.