Abbott Q1 strong but still in penalty box on litigation overhang, says Bernstein

Bernstein analyst Lee Hambright keeps an Outperform rating and $133 price target on Abbott after its Q1 earnings. The quarter was strong and the company issued a “rare” post-Q1 guidance upgrade while also calling for a 70bps mross margin improvement in 2024, the analyst tells investors in a research note. The firm also believes that the stock is undervalued at current levels and expects itsLibre 3 ramp to continue to be an important growth driver, though the infant formula NEC litigation could keep Abbott in a holding pattern at least until cases get through court this summer.