Bank of America Securities analyst Travis Steed maintained a Buy rating on Abbott Laboratories yesterday and set a price target of $150.00.
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Travis Steed’s rating is based on Abbott Laboratories’ strategic positioning and potential growth prospects. The potential acquisition of EXAS is seen as a strategic fit within Abbott’s diagnostics portfolio, leveraging its expertise in consumer healthcare and primary care channels. This acquisition could potentially add incremental growth to Abbott’s business, demonstrating its commitment to deploying resources for growth assets.
Moreover, Steed notes that Abbott’s management is focused on profitability and return on invested capital, suggesting that any deal would be pursued with a strong emphasis on generating solid returns. The potential synergies from the acquisition, particularly in reducing general and administrative expenses and expanding into new diagnostics areas, could enhance Abbott’s return profile. Despite initial dilution, the acquisition is expected to be accretive in the long term, supporting the Buy rating.
According to TipRanks, Steed is a 4-star analyst with an average return of 7.2% and a 63.20% success rate. Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Medtronic, and Intuitive Surgical.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $150.00 price target.