Abbott initiated with an Overweight at Piper Sandler

Piper Sandler analyst Adam Maeder initiated coverage of Abbott Laboratories with an Overweight rating and $131 price target. While the company’s execution has been strong, the shares have underperformed year-to-date due to the ongoing necrotizing enterocolitis litigation, which has been an overhang, the analyst tells investors in a research note. However, the firm des not see much sales risk associated with the litigation, and believes the Street is already pricing potential damages into the stock. Piper sees an attractive entry point into what it believes is one of the higher quality large-cap medtech names.