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ABT – Market expectations are for Uniform ROA to reach new peaks, and management is confident about their products, pipeline, and business recovery

September 17, 2020

  • Abbott Laboratories (ABT:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 29.6x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their products, pipeline, and EPD business recovery

  • Specifically, management is confident in their vision and strategy for insulin pumps and pens and that they can drive new user acquisitions and recovery for Libre 2. In addition, they are confident in the potential of their new innovations and product launches in China and that the Established Pharmaceutical Products (EPD) segment’s recovery in emerging markets will come back in a similar fashion to developed markets