Positive Legal and Market Factors Justify Buy Rating for Abbott Laboratories

Analyst Larry Biegelsen of Wells Fargo maintained a Buy rating on Abbott Laboratories (ABT – Research Report), retaining the price target of $147.00.

Larry Biegelsen has given his Buy rating due to a combination of factors surrounding Abbott Laboratories’ recent legal victory. The favorable summary judgment in the first MDL NEC case indicates a positive outlook for Abbott in similar pending cases. This decision, issued by Judge Rebecca Pallmeyer, dismissed the plaintiff’s claims, reinforcing Abbott’s position that their formula was not defective and that no safer alternative was feasible.
Although the ruling has limited direct application to other cases, the difficulty for plaintiffs to produce a more favorable record suggests a strong defense for Abbott in future litigation. Additionally, the lack of adequate donor breast milk in hospitals supports the continued use of formula, further strengthening Abbott’s market position. These legal and market factors contribute to a positive investment outlook, justifying the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $159.00 price target.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ABT in relation to earlier this year.