UBS Reiterates a 'Buy' on Abbott Labs (ABT); Raising Price Target on Sum-of-Parts Review

UBS reiterates a 'Buy' on Abbott Labs (NYSE: ABT) price target raised from $62 to $68.

UBS analyst said, "Since ABT’s split into DiversifiedCo (D-Co) & PharmaCo (P-Co) was announced, our positive thesis has revolved around value creation through allocation of the dividend. It feels like this view is gaining traction....We est D-Co & P-Co will generate $6.0B & $7.0B of EBITDA in 2013. D-Co valued at $34 on
9.5x 2013 EV/EBITDA & 13x cash EPS. P-Co also valued at $34 on 4.5% dividend yield w/ 74% of ABT’s existing dividend paid by P-Co (43% payout of cash EPS; Humira is manufactured in Puerto Rico & we assume profits are available)."


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 $59.42 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• QuantumScape (QS) PT Lowered to $6 at Truist Securities
• Piper Sandler Downgrades Magnolia Oil & Gas Corp. (MGY) to Neutral
• Comerica (CMA) PT Raised to $54 at Piper Sandler