Jefferies Boosts Price Target on Abbott Labs (ABT), Says Worth Much More in a Break-Up
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Price: $116.64 +2.19%
Rating Summary:
26 Buy, 9 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 9 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies raised its price target on Abbott Labs (NYSE: ABT) sharply from $65 to $76 while maintaining its Buy rating.
The firm comments, "The market significantly undervalues the break-up valuation of Abbott post the spin-off of the Pharma unit in our view. Growth investors will be attracted to the DMP business where we estimate valuation of $35 per share. The Proprietary Pharmaceuticals spin-off will be targeted by income funds, where a sector average yield implies a valuation of $41 per share. Combined we use this sum-of-the-parts approach to drive our new PT of $76."
The firm raised FY12 EPS from $5.85 to $5.86 and trimmed FY13 from $6.46 to $6.42.
For an analyst ratings summary and ratings history on Abbott Labs click here. For more ratings news on Abbott Labs click here.
Shares of Abbott Labs closed at $56.26 yesterday.
The firm comments, "The market significantly undervalues the break-up valuation of Abbott post the spin-off of the Pharma unit in our view. Growth investors will be attracted to the DMP business where we estimate valuation of $35 per share. The Proprietary Pharmaceuticals spin-off will be targeted by income funds, where a sector average yield implies a valuation of $41 per share. Combined we use this sum-of-the-parts approach to drive our new PT of $76."
The firm raised FY12 EPS from $5.85 to $5.86 and trimmed FY13 from $6.46 to $6.42.
For an analyst ratings summary and ratings history on Abbott Labs click here. For more ratings news on Abbott Labs click here.
Shares of Abbott Labs closed at $56.26 yesterday.
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