In 2016 Abbott Laboratories shares have traded in the range of $37 to $45. As per the Barron’s report the shares make a good buy since Abbott’s Laboratories acquisition of St Jude have skewed its global profile to the U.S. market which should shield it from headwinds from the volatile forex market. Furthermore, St. Jude’s product pipelines are set to receive the thumbs up from the Feds which are likely to potentially boost its U.S. earnings, thus making its shares underpriced and thus a good buy.
Barron’s has reported that Abbott Laboratories’ shares are likely to rise on the back of its $25 billion acquisition of St Jude Medical.
Based out of Abbott Park, Illinois, Abbott Laboratories, is a global healthcare company which has seen its stock being traded in the range of $37 to $45 in 2015-2016. Given fluctuations its global profile and the choppy currency markets, investors have been concerned regarding its headwinds and its acquisition of St. Jude.
This element of uncertainty surrounding the company has created an opportunity for savvy investors who have now an opportunity to pick the inexpensive shares of a company which has a “proven track record and a good shot at continuing its double-digit earnings growth,” said Barron’s in its report.
Barron’s report has underlined the fact that a 20% return is credible over a year.
However, Abbott’s St. Jude acquisition, which closed last month, has weighed down the stock with some investors questioning whether Abbott’s premium was justified given the fact that St. Jude has had a history of delayed product launches.
Nevertheless, this acquisition actually changes Abbott’s profile towards the U.S. market which should ease headwinds pertaining to the volatility in the currency market and the growing strength of the greenback.
Furthermore, a growing number of St. Jude products are also expected to get approval from the feds this year, following the thumbs of its Assurity MRI pacemaker earlier this month, so those concerns can be assuaged.
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