Market Overview

Abbott Laboratories Makes BMO Capital's Top Picks List

Abbott Laboratories Makes BMO Capital's Top Picks List
Related ABT
Benzinga's Top Upgrades, Downgrades For October 16, 2018
The Week Ahead In Biotech: ESMO Conference, PDUFA Dates, Clinical Trial Results And IPOs
New operating chief at Abbott (Seeking Alpha)

Abbott Laboratories (NYSE: ABT) had a busy 2017 after acquiring Alere and St. Jude Medical, earning the stock a nod of approval from a Wall Street analyst.

The Analyst

BMO Capital Markets' Joanne Wuensch upgraded Abbott's stock rating from Market Perform to Outperform with a price target raised from $58 to $65 while also placing the stock on the firm's "Top Picks" list. 

The Thesis

Abbot, like every other stock in the medical technology space, is based on three factors: product pipeline, access to cash and valuation, Wuensch said. (See Wuensch's track record here.) 

In Abbott's case, the company recently secured approval for FreeStyle Libre Consumer (September), the Proclaim DRG Neurostimulator (October), HeartMate 3 LVAD (August) and MRI-conditional labeling for its Ellipse ICD (September). On top of that, the pipeline remains "rich," including the next-generation Xience Sierra drug-eluting stent, MRI-labeling for its CRT-D and CRT-P devices and Alinity diagnostic platform in the U.S. after a strong start in Europe, according to BMO. 

Abbott satisfies the other two criteria on the checklist, the analyst said. The company has done a "solid job" in free cash flow generation, which allows it to pay down its debt faster than previously expected, Wuensch said. And the stock is trading at 19.3x 2018E EPS — in line with the medtech group's average of 19.6x — yet it is generating the second fastest earnings per share growth in the entire group.

Price Action

Shares of Abbott were up less than 1 percent at $55.41 at the time of publication. 

Related Links:

5 Biggest Price Target Changes For Tuesday

Benzinga's Top Upgrades, Downgrades For December 12, 2017

Photo courtesy of Abbott Laboratories. 

Latest Ratings for ABT

Oct 2018BarclaysInitiates Coverage OnOverweight
Oct 2018Morgan StanleyMaintainsOverweightOverweight
Oct 2018JP MorganMaintainsOverweightOverweight

View More Analyst Ratings for ABT
View the Latest Analyst Ratings

Posted-In: Alere BMO Capital MarkersAnalyst Color Upgrades Health Care Price Target Analyst Ratings General Best of Benzinga


Related Articles (ABT)

View Comments and Join the Discussion!
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Vice Index: Where The US Economy Stands Going Into 2018

30 Stocks Moving In Tuesday's Mid-Day Session