Is Abbott Laboratories (ABT) Still Undervalued On Volt’s First US And Canada Procedures?
Abbott Laboratories (ABT) has just seen its Volt Pulsed Field Ablation System move from approval to real world use, with first procedures reported in both Canada and the United States.
For context, Abbott Laboratories is trading at US$103.69 after a 90 day share price return of 14.59%, even though the 1 year total shareholder return is down 21.93%. This points to momentum rebuilding in the short term after a tougher stretch for longer term holders.
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After a sharp 90 day rebound and fresh momentum around Volt, the question shifts from product excitement to price. Does Abbott Laboratories still offer enough upside potential to justify the risks at US$103.69?
Most Popular Narrative: 14% Undervalued
On the most followed view of Abbott Laboratories, a fair value of $120.26 sits ahead of the recent $103.69 close, which puts the Volt momentum into a broader earnings and cash flow story.
Rollout of new electrophysiology tools such as Volt and TactiFlex Duo, which already helped drive low teens EP sales growth and more than 20% growth in Europe, alongside recent approvals in the United States, Europe and Canada, positions Abbott Laboratories to capture more procedures in atrial fibrillation care and potentially lift device revenue and margins.
See why 183 investors see Abbott Laboratories as 14% undervalued.
Result: Fair Value of $120.26 (UNDERVALUED)
Still, Abbott Laboratories faces real pressure from ongoing Nutrition legal settlements and from the heavier spending needs tied to Libre manufacturing expansion.
Find out about the key risks to this Abbott Laboratories narrative.
Another View On Abbott Laboratories Valuation
The 14% upside to the US$120.26 fair value leans heavily on analyst forecasts, yet Abbott Laboratories trades on a P/E of 33.2x versus 25.3x for the US Medical Equipment industry and 31.5x for peers. A fair ratio of 37x suggests some headroom, but it raises the question of how comfortable investors are paying above sector norms for this story.
See what the numbers suggest about this price in our valuation breakdown by reviewing the See what the numbers say about this price — find out in our valuation breakdown..
Next Steps
Mixed signals around Abbott Laboratories valuation and risk profile call for your own judgment. Move quickly to check both sides of the story and weigh the 2 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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