Jefferies analyst Raj Denhoy notes shares of Alere (ALR) fell 12% yesterday after Abbott (ABT) CEO Miles White did not reaffirm his commitment to the acquisition when given the chance. White's comments were intended to be as neutral as possible given the ongoing Foreign Corrupt Practices Act investigation as well as the various antitrust analyses of the proposed transaction, Denhoy tells investors in a research note. He continues to think that Abbott does the deal, but believes it makes sense for the company to "keep all of its options open." Maybe Abbott can lower the $56 per share price it is paying for Alere if there were no other bidders, Denhoy contends. He notes the presence of other bidders will be learned in the proxy. The analyst sees a "bear case stand-alone valuation" for Alere at $40 per share. The stock closed yesterday down $6.12 to $43.35. He keeps a Hold rating on the stock with a $56 price target.
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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here
Says pipeline contributing at an "accelerated level." Says more opportunities vs. risks going forward. Targeting about 70 bps in gross margin improvement in FY24. Says FX challenges still remain. Says all business segments "super well aligned" to demographics, health care trends.
Unusual total active option classes on open include: Steel Dynamics (STLD), Gildan Activewear (GIL), Danaher (DHR), Altimeter Growth (GRAB), Childrens Place (PLCE), ASML (ASML), US Bancorp (USB), iShares Barclays 7 to 10 Year Treasury Bond Fund (IEF), AMC Entertainment (AMC), and Abbott (ABT).
Check out this morning's top movers from around Wall Street, compiled by The Fly. HIGHER - Alcoa (AA)... To see the rest of the story go to thefly.com. See Story Here
Worldwide Medical Devices sales increased 14.2% on a reported basis and 14.3% on an organic basis in the first quarter, including double-digit growth in both the U.S. and internationally.
FY24 consensus $4.59. Abbott narrowed its full-year 2024 organic sales growth guidance range, excluding COVID-19 testing-related sales, to 8.5%-10.0%, which represents an increase at the midpoint of the range. Prior view was FY24 organic sales growth, excluding COVID-19 testing-related sales, in the range of 8.0%-10.0%. FY24 revenue consensus $41.99B.
Reports Q1 revenue $10B, consensus $9.88B. "Our first-quarter results reflect a strong start to the year, and we are raising our full-year sales and EPS guidance," said Robert Ford, chairman and CEO, Abbott. "This was the fifth consecutive quarter that we delivered double-digit organic sales growth in our underlying base business, which included particularly strong results in Medical Devices and Established Pharmaceuticals."