UBS analyst Danielle Antalffy maintained a Buy rating on Abbott Laboratories yesterday and set a price target of $158.00.
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Danielle Antalffy has given her Buy rating due to a combination of factors including Abbott Laboratories’ strategic acquisition of Exact Sciences, which is expected to significantly enhance its diagnostics business. This acquisition is projected to contribute an additional 300 basis points to the diagnostics segment’s growth and 50 basis points to the total sales growth, addressing investor concerns about the perceived weaknesses in the diagnostics business. Furthermore, Abbott anticipates $100 million in pre-tax cost synergies, which, although considered conservative, are expected to provide additional financial benefits.
Additionally, the acquisition is seen as a means to expand Abbott’s diagnostic portfolio, particularly in the area of colorectal cancer screening, where Exact Sciences’ Cologuard product is gaining traction. The transition to Cologuard+ is expected to improve sensitivity and average selling prices, while the favorable rescreening dynamic supports recurring revenue. Abbott’s management also views blood-based testing as an opportunity to expand the total addressable market, further strengthening the company’s growth prospects.
According to TipRanks, Antalffy is a 4-star analyst with an average return of 3.2% and a 51.96% success rate. Antalffy covers the Healthcare sector, focusing on stocks such as Abbott Laboratories, Boston Scientific, and Dexcom.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $145.00 price target.