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Opinions Paul MacDonald
Abbott LabsABTCOMMENTJun 22, 2016
Paul MacDonaldStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Medical devices, generics sold to EMs, nutrition. Lots of money during pandemic, money redeployed into new products. Attractive entry point. Yield is 2%, dividend increased every year.
Christine PooleIt is a diversified global health care company with four operating divisions. Sales dropped dramatically after benefiting during Covid but the basic business is doing well with all divisions growing organically. Weight loss patients are using their drugs to monitor glucose. It has had 51 years of dividend increases. Buy 19 Hold 7 Sell 0
(Analysts’ price target is $116.88)Christine PooleHas owned this many years. She likes healthcare because of aging demographics. They made a lot of cash during Covid and have used that cash for M&A and R&D. Pays a nice 2.5% dividend. Has an established track record of raising their dividend annually. Trades at a reasonable PE. Lags healthcare, but still likes ABT.
Christine PooleIt is a diversified medical device company with a large diagnostic business. It has made several acquisitions giving it a very diversified platform and is executing well in the cardio-vascular and diabetes fields. Buy 20 Hold 7 Sell 1
Paul MacDonald
Defensive. Very strong growth platform. Diagnostic business is right-sizing now, but organic growth of other businesses is double digits. Valuation is a bit more expensive at 23x earnings, but free cashflow yield is about 4%.
Instead of innovation, they tend to acquire and enhance, which has been a knock against them. Big wins in cardiac portfolio and FreeStyle Libre glucose monitoring. Businesses are right in the sweet spot. Yield is 1.83%.
Chris BlumasThey made the Covid testing kits which generated $20 billion in revenues, so shares got ahead of itself. The market has ignored any such companies since then, but these earnings will eventually work their way up again. ABT has given guidance ex-Covid tests, meaning double-digit organic growth. This is a long-time core holding. They're in medtech and medical procedures are ramping up (a tailwind). Pays a constant and long-growing dividend now around 2.5%. She likes healthcare as a play on the aging population.
Christine PooleStill owns shares in the company.
Believes healthcare a good defensive name.
Target price of $110 per share.
Good performance in the past for the portfolio.
Averaged 16% growth the past 5 years.
Good company for the long term investor.
Brianne Gardner
Has 4 businesses, an established pharma, labs division, diagnostic division and a medical device division. Has owned this for some time. Recently made a couple of acquisitions, so the valuation hasn’t kept up with its peers. Part of the reason is because of hair on some of the acquisitions. They are looking to acquire another company for about $5 billion + $3 billion in debt, which would be complementary to their monitoring devices. Their larger acquisition is St. Jude Medical, highly complementary and a leader in cardiac rhythmic management. Paid $25 billion with about $5 billion debt. This is going to be cash and stock. A situation where patience is required. You have 6 months of a bit of noise around the acquisitions, and after that they will be integrated and begin their growth. He is writing options on this.