S&P Capital IQ Reiterates its BUY Rating on Abbott Laboratories, Target Price Raised

October 21 00:00 2011

NEW YORK, October 20 (RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Capital IQ reiterates his BUY rating on the shares of Abbott Laboratories (NYSE:ABT), while raising his estimates for the company. The 12-month target price is raised from $58 to $ 61.

Analyst Herman Saftlas, in a research note published yesterday mentions that the company announced plans to spinoff its research based pharmaceutical business as a separate company but retaining diversified medical products operations. This move will lead to an improvement in the valuation for each company and help investors to pay attention on each company’s potential growth, the analyst says. The analyst believes that the tax free spinoff would be completed by the end of 2012 subject to regulatory approvals. The EPS estimate for 2011 has been raised from $4.60 to $4.66.