Abbott Laboratories: High Single-Digit Long Run Revenue Growth

Aug. 31, 2021 5:24 PM ETAbbott Laboratories (ABT)15 Comments
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Khaveen Investments
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Summary

  • Its diabetes care business is forecasted to grow by 17% in the long run with a heavy focus on continuous glucose monitoring.
  • Resilient nutritionals business which is expected to grow in the high single digits due to changing consumer lifestyles.
  • Highly focused on growing cardiovascular-related business with a 77% increase in cash in 2020 due to COVID-19 related revenues.
  • COVID-19 related revenue is expected to drastically decline in the second half of 2021 and disappear completely in 2022.
  • We valued the company based on a DCF valuation and obtained a neutral rating.

Abbott Laboratories headquarters in Silicon Valley
Sundry Photography/iStock Editorial via Getty Images

Abbott Laboratories (NYSE:ABT) is a global diagnostics equipment company that caters to a wide variety of markets. In this analysis, we focused on the company’s potential to grow beyond the pandemic and its main

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Khaveen Investments profile picture
5.53K Followers
Khaveen Investments is a Global Macro Quantamental Hedge Fund managing a tactical asset-allocated portfolio of globally diversified investments. We have interests in 100+ investments across multiple asset classes, countries, sectors and industries. Our investment approach takes both a top-down and bottom-up approach encompassing macro-economic, fundamental, quantitative and technical analysis. We serve accredited investors throughout the globe, which include HNW individuals, SMEs, associations, and institutions. Our investment managers have decades of investment experience between them, with research expertise in emerging technologies such as Artificial Intelligence, Cloud Computing, 5G, Autonomous & ElectricVehicles, FinTech, Augmented & Virtual Reality and the Internet of Things.www.khaveen.com

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ABT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: No information in this publication is intended as investment, tax, accounting, or legal advice, or as an offer/solicitation to sell or buy. Material provided in this publication is for educational purposes only, and was prepared from sources and data believed to be reliable, but we do not guarantee its accuracy or completeness.

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