Abbott Labs Downgraded At Citi (ABT)

Analysts at Citigroup downgraded shares of Abbott Labs (NYSE: ABT) from Neutral to Sell today. The firm also lowered their price target on ABT stock from $52 to $46.

Citigroup analyst Matthew Dodds said, "ABT appears to be masking underlying profitability trouble in '10 with larger accretion from Solvay than forecast. The Solvay EPS lift should trail off in '11. With a thin pipeline, this only increases ABT's dependence on Humira, in our view."

Dodds continued, "ABT appears to be understating an overall margin slide for its base business as we calculate Solvay accretion at nearly $0.30 in 2010. This compares to management guidance of just $0.10 and we are surprised how little attention this low number has received to date."

ABT shares have fallen 2.52% today and are currently trading at $54.17. If Citigroup is right, Abbott (ABT) might be a good short candidate at these levels.