In a report released yesterday, Bruce Jackson from Benchmark Co. maintained a Buy rating on Abbott Laboratories, with a price target of $145.00.
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Bruce Jackson’s rating is based on Abbott Laboratories’ strategic decision to acquire Exact Sciences, which is expected to enhance Abbott’s Diagnostics business significantly. The acquisition, valued at approximately $21 billion, is projected to provide immediate sales and margin improvements, thanks to Exact Sciences’ strong domestic revenue base and potential synergies.
The acquisition is anticipated to boost revenue growth and improve gross margins, with management projecting an increase in both total company revenue growth and the sales growth rate of the diagnostics unit. Although there will be a short-term EPS dilution, the deal is expected to be additive to ROIC in the long term, with significant annual pre-tax synergies anticipated by 2028. The financing of the acquisition is structured to maintain a stable financial position, ensuring that Abbott can capitalize on the growth opportunities presented by the acquisition.
In another report released today, UBS also maintained a Buy rating on the stock with a $158.00 price target.