Abbott Laboratories (NYSE: ABT) reported fourth-quarter results that were highlighted by a top- and bottom-line beat and a guidance range for the first quarter that came in ahead of the consensus estimate.
After Abbott Laboratories posted a revenue and earnings per share beat, Kaczor gave six reasons for turning bullish on the stock. (See the analyst's track record here.)
- Trends seen across multiple business segments are sustainable and will help the company post a mid- to high-single-digit sales growth rate and a mid-teens earnings growth rate over the longer term. This strong growth profile makes Abbott among the best within the entire large-cap med tech space.
- Abbott Laboratories boasts multiple ongoing and upcoming product lines that represent multi-hundred million dollar sales opportunities over the next few years.
- Management continues to spend hundreds of millions to support its multiple products, but these are solid investments and will taper down over time while creating earnings leverage.
- As the company continues to pay down its large debt load, it will free up capital in 2019 and beyond for share repurchases, M&A activity or other investments.
- Any risk associated with international pediatric nutritional sales appear to have stabilized in the fourth quarter.
- Abbott Laboratories' stock valuation remains "reasonable" despite a more than 50-percent gain over the past year alone.
Shares of Abbott Laboratories hit a new all-time high of $64.80 on Thursday and were trading higher by more than 2 percent on the day.
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Latest Ratings for ABT
|Jan 2018||Stifel Nicolaus||Maintains||Buy||Buy|
|Jan 2018||JP Morgan||Maintains||Overweight||Overweight|
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