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Investing.com - TD Cowen reiterated a Buy rating and $137.00 price target on Abbott Laboratories (NYSE:ABT).
The firm said the stock’s recent decline was overdone following a verdict related to necrotizing enterocolitis and the release of industry comments on the Centers for Medicare & Medicaid Services’ Comprehensive Regulations to Uncover Suspicious Healthcare initiative. Abbott shares fell approximately 2% late last week.
TD Cowen said multiple datapoints suggest Cologuard is insulated from potential CMS actions. The firm said Abbott’s exposure through its acquisition of Exact Sciences is minimal.
The firm addressed three primary investor concerns. One concern involves potential CMS action on reimbursement through the Molecular Diagnostic Services program, which establishes reimbursement for tests that demonstrate analytical and clinical validity as well as clinical utility. Despite recent pressure, InvestingPro analysis suggests Abbott appears undervalued at current levels, with analyst price targets ranging from $113 to $158. For deeper insights, Abbott is among the 1,400+ US equities covered by comprehensive Pro Research Reports available on InvestingPro.
Cologuard is currently covered under a National Coverage Determination, so the core Exact Sciences business is not exposed to potential CMS changes to the MolDX program, TD Cowen said.
In other recent news, Abbott has completed its acquisition of Exact Sciences, integrating cancer screening and diagnostics into its healthcare portfolio. As part of the merger agreement, Exact Sciences is now a wholly owned subsidiary of Abbott, and its shares have ceased trading on the Nasdaq Stock Market. The acquisition is expected to contribute approximately $3 billion in incremental sales to Abbott in 2026, although it is projected to dilute adjusted earnings per share by about $0.20. Additionally, Abbott has integrated its Precision Oncology test portfolio into Flatiron’s OncoEMR platform, allowing oncology providers to order tests and receive results seamlessly within their clinical workflow.
In analyst updates, UBS has reiterated a Buy rating for Abbott Laboratories, highlighting potential growth in the company’s structural heart business following a positive CHAMPION readout. Similarly, Benchmark has maintained a Buy rating on Abbott stock after the company’s FreeDM trial showed significant improvements in glucose outcomes for Type 2 diabetics using its FreeStyle Libre technology. These developments indicate continued confidence from analysts in Abbott’s strategic initiatives and technological advancements.
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