Abbott Laboratories (NYSE:ABT) was lifted to Peer Perform from Underperform at Wolfe Research on Friday, with the firm removing its price target for the stock.
Analysts told investors in a note that "the edge has gone dull," and their conviction in an Underperform rating is now lower than before following the company's earnings release on Thursday.
Abbott reported earnings of $1.08 per share, $0.03 better than the analyst estimate of $1.05, while revenue for the quarter came in at $10 billion versus the consensus estimate of $9.69B.
"This 2Q23 report substantially reduces our anxiety about the core ramp required to hit the 2023 profit guide," wrote Polark. "Indeed, now, with this print, the path rest of year appears quite normal, if normal means aligned with pre-COVID pattern," the analysts added.
They explained that with the COVID testing boom days flushed out, price/cost mismatch, and FX issues potentially easing ahead, proactively advocating for the short side feels trickier.