On Thursday, TD Cowen reaffirmed its Buy rating on shares of Abbott Laboratories (NYSE:ABT), maintaining a price target of $130.00. The endorsement follows Abbott's report of second-quarter revenues and earnings per share (EPS) that surpassed expectations.
The company announced revenue of $10.38 billion and EPS of $1.14, slightly ahead of the anticipated $10.37 billion and $1.11, respectively.
Abbott's base business, which excludes sales from Covid testing, experienced a robust organic sales growth of 9.3%. This performance has prompted the company to revise its full-year outlook upwards.
Abbott now anticipates organic sales growth, excluding Covid-related revenues, to be between 9.5% and 10.0%. Moreover, the firm has increased its EPS forecast to a range of $4.61 to $4.71, from the previously projected $4.55 to $4.70.
The updated guidance reflects confidence in the company's ongoing business operations beyond the contributions from Covid-19 test sales. Abbott's ability to outperform in its base business segments indicates a strong underlying demand for its diverse healthcare products and services.
The reiterated Buy rating by TD Cowen signals the firm's continued positive outlook on Abbott's financial health and market position. With the upgraded financial forecasts, Abbott Laboratories appears to be on a trajectory for sustained growth in the current fiscal year.
Investors and market watchers may see the maintained price target and positive remarks from TD Cowen as reaffirmation of Abbott's solid performance and potential for future gains. The company's stock performance will likely continue to be monitored closely as it progresses through the remainder of the year.
In other recent news, Abbott Laboratories reported a 4.0% increase in its second-quarter 2024 revenues, reaching $10.38 billion. The company's earnings per share (EPS) rose by 5.8%, reaching $1.14 and surpassing the consensus expectation of $1.11. Abbott's management has adjusted its forecast, raising the lower end of its organic sales growth to a range of 9.5%-10.0% and increasing the EPS guidance to $4.61-$4.71.
In response to these developments, Citi has maintained its Buy rating on Abbott Laboratories with a $119 target. Concurrently, TD Cowen has reaffirmed its Buy rating and a $130.00 price target for the company's stock. Analysts from BTIG, Goldman Sachs (NYSE:GS), and Citi have also issued Buy ratings for Abbott.
In product development, Abbott has announced its 402nd consecutive quarterly dividend of 55 cents per share and received FDA clearance for two new over-the-counter continuous glucose monitoring systems, Lingo and Libre Rio.
Still, the company is currently facing a trial over allegations that its baby formula for preterm infants is linked to a dangerous bowel disease. These recent developments highlight an eventful period for Abbott Laboratories.
InvestingPro Insights
Abbott Laboratories (NYSE:ABT) has demonstrated a consistent commitment to shareholder returns, as highlighted by a decade-long history of dividend increases. This trend is underscored by the company's impressive streak of maintaining dividend payments for 54 years, showcasing its financial resilience and dedication to investors.
Moreover, Abbott's status as a prominent player in the Healthcare Equipment & Supplies industry is reflected in its substantial market capitalization of $182.1 billion, which speaks to its scale and influence within the sector.
The company's financial health is further evidenced by its ability to comfortably cover interest payments with its cash flows, a sign of prudent financial management. With a stable gross profit margin of 55.26% over the last twelve months as of Q1 2024, Abbott continues to efficiently manage its cost of goods sold, contributing to robust operating income. These metrics, combined with a dividend yield of 2.1%, may appeal to investors looking for a blend of growth and income in their portfolios.
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