On Friday, TD (TSX:TD) Cowen exhibited confidence in Abbott Laboratories (NYSE:ABT) shares by increasing the company's price target to $135 from the previous $130, while sustaining a Buy rating on the stock.
The adjustment follows the successful U.S. launch of TriClip, a significant addition to Abbott's portfolio of medical devices. With a market capitalization of $195 billion and a P/E ratio of 34.2, Abbott appears fairly valued according to InvestingPro Fair Value analysis.
Abbott Labs has recently completed its ambitious plan to roll out what the firm refers to as the "Fab Five" products. This lineup, which includes the newly launched TriClip, alongside existing products such as Libre, MitraClip, and Alinity, is anticipated to be a key growth catalyst for the company heading into 2025 and beyond.
The company's strong financial position is reflected in its "GOOD" overall health score from InvestingPro, which also highlights Abbott's impressive 54-year streak of maintaining dividend payments.
The company has expressed its comfort with the current market projections for the year 2025, deeming the anticipated 7% increase in sales and 10% rise in earnings per share (EPS) as "very reasonable starting points." These projections align with the overall positive sentiment from TD Cowen regarding Abbott's future financial performance.
The endorsement of Abbott's growth outlook by TD Cowen underscores the analyst firm's belief in the company's strategic direction and product strength. With the addition of TriClip to its portfolio, Abbott Labs appears well-positioned to meet the market expectations and deliver sustained growth in the coming years.
Investors are likely to keep a close watch on Abbott's performance as it strives to leverage its "Fab Five" products to drive revenue and EPS growth, in line with the favorable estimates and the confidence expressed by TD Cowen.
In other recent news, RBC (TSX:RY) Capital Markets has expressed a bullish outlook on the Medical (TASE:PMCN) Supplies & Devices sector for 2025, highlighting companies like Boston Scientific (NYSE:BSX) and Intuitive Surgical (NASDAQ:ISRG). The firm also sees potential upside in stocks like DexCom (NASDAQ:DXCM), Medtronic (NYSE:MDT), and Edwards Lifesciences (NYSE:EW). Meanwhile, Abbott Laboratories has increased its quarterly dividend by 7.3%, marking its 53rd consecutive year of dividend growth.
In addition to this, Abbott has extended its executive agreements through 2026, ensuring leadership continuity. The company reported strong third-quarter earnings, with revenues of $10.64 billion and GAAP earnings per share of $0.94. It has also raised its full-year EPS guidance for the third time this year, now forecasting between $4.64 and $4.70.
Analyst firms, including JPMorgan (NYSE:JPM), Jefferies, and Stifel, have maintained or increased their price targets for Abbott, reflecting confidence in the company's growth prospects.
Furthermore, Inspire Medical Systems (NYSE:INSP) reported a 33% increase in third-quarter revenue to $203.2 million and a net income of $18.5 million. The company raised its full-year 2024 revenue guidance to a range of $793-798 million, marking a 27-28% year-over-year increase.
Analysts anticipate that Inspire Medical could achieve a 9-10% operating margin by 2026, based on high-teens revenue growth. These are among the recent developments in the healthcare sector.
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