J.P. Morgan analyst Robbie Marcus has maintained their bullish stance on ABT stock, giving a Buy rating today.
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Robbie Marcus has given his Buy rating due to a combination of factors that highlight Abbott Laboratories’ strategic positioning and growth potential. One of the key reasons is Abbott’s potential acquisition of Exact Sciences, which is seen as a strategic fit that could enhance Abbott’s diagnostics division. This acquisition is anticipated to provide both top-line and bottom-line growth, aligning well with Abbott’s existing business operations.
Furthermore, the acquisition is expected to yield a favorable return on invested capital over time, with potential for earnings per share accretion in the long term. Despite some initial earnings dilution, the deal is structured to achieve breakeven by the second year. Additionally, the acquisition could lead to cost synergies in areas like SG&A and R&D, further supporting Abbott’s financial performance. These factors collectively contribute to Marcus’s optimistic outlook on Abbott’s stock, justifying the Buy rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $145.00 price target.