Analysts took action on some healthcare stocks yesterday, Dec. 12.
BMO Capital Markets – a Bank of Montreal’s subsidiary – raised its rating on shares of Abbott Laboratories (ABT, Financial) to Outperform from a previous rating of Market Perform.
As reported by thefly.com, Joanne Wuensch, analyst at BMO Capital, “is placing the stock on her Top Picks list, noting that 2018 will be the year of execution with several product launches ahead and acquisitions of Alere and St. June in the past.”
The analyst maintains the target price of $65 per share of Abbott labs, which is a 16.7% upside from the current market value per share.
The analyst says, adds thefly.com, that “the company stands to benefit from easier comps and shifting foreign exchange environment” in the first six months of 2018 as well.
Abbott Labs has an average target price of $61.88 per share and a recommendation rating of 2 out of a total of 5.
The U.S. health care stock has a market capitalization of $96.85 billion, a price-book (P/B) ratio of 3.02 versus an industry median of 2.94, a price-sales (P/S) ratio of 3.73 versus an industry median of 3.06 and a price-earnings (P/E) ratio of 43.85 versus an industry median of 30.77.
For the 52-weeks through Dec. 12, Abbott labs gained 43% on the New York Stock Exchange and is trading about 1.8% below the 52-week high of $56.69. The 52-week low is $37.90.
The forward P/E ratio is 19.92 versus an industry median of 25.06. When the forward P/E ratio is multiplied by the EPS of $2.83 – as forecasted by analysts for full fiscal 2018 – it yields to a value of $56.37 per share. For full fiscal 2017, analysts expect Abbott Labs will report EPS of $2.50.
Abbott Labs has a forward annual dividend of $1.06 for a yield of 1.94%.
Citigroup Inc. (C) confirmed its buy rating on shares of Aetna Inc. (AET, Financial) and its price target of $197 per unit.
As reported by the StreetInsider.com, Ralph Giacobbe, analyst at Citigroup, “notes the removal of AET from the Citi Focus List, as the company's valuation is no longer trading on standalone fundamentals following the pending deal with CVS.”
Aetna Inc. has an average target price of $192.76 per share, which is a 6.3% upside from the current share price of $181.33.
The recommendation rating is 2.4 out of 5.
The U.S. managed health care company has a market capitalization of $59.13 billion, a price-book (P/B) ratio of 3.80 versus an industry median of 2.89, a price-sales (P/S) ratio of 1.01 versus an industry median of 0.58 and a price-earnings (P/E) ratio of 33.66 versus an industry median of 19.90.
For the 52-weeks through Dec. 12, Aetna Inc. gained 43% on the New York Stock Exchange. The 52-week range is $116.04 to $192.37.
The forward P/E ratio is 18.08 versus an industry median of 15.85.
For full fiscal 2017 and 2018, analysts forecast Aetna will report EPS of $9.74 and $10.04.
Aetna has a forward annual dividend of $2 for a yield of 1.09%.
Medtronic PLC (MDT, Financial) has been upgraded by Argus to a buy rating from a previous rating of hold. The firm has set a price target of $95 per share.
As reported by thefly.com, John Eade, analyst at Argus, “sees better opportunities ahead for the stock, having generated synergies from its acquisition of Covidien and its work on improving operating margins.”
For the next two years, the analyst sets its goal of growth at nearly 10% and adds “that the stock valuation of about 16-times expected 2019 earnings is well below the average multiple of 21-times for its peers.”
Medtronic PLC has an average target price of $89.92 per share, which is 9.7% higher than the current share price of $82 and has a recommendation rating of 2.3 out of a total of 5.
The stock has a market capitalization of $110.99 billion, a price-book (P/B) ratio of 2.16 versus an industry median of 2.94, a price-sales (P/S) ratio of 3.80 versus an industry median of 3.06 and a price-earnings (P/E) ratio of 22.47 versus an industry median of 30.77.
For the 52-weeks through Dec. 12, the medical device company gained 12% on the New York Stock Exchange and is trading about 9.4% below the 52-week high of $89.72. The 52-week low is $69.35.
The forward P/E ratio is 17.27 versus an industry median of 25.06.
Analysts forecast 3.7% growth in EPS to $4.77 in full fiscal 2018 and 8.4% growth in EPS to $5.17 in full fiscal 2019.
Medtronic PLC has a forward annual dividend of $1.84 for a yield of 2.26%.
Guggenheim started covering shares of Mylan N.V. (MYL, Financial) with a buy rating, according to a research note dispatched by the financial services firm on Dec. 12.
Guggenheim set a price target of $59 per share of Mylan N.V.
As reported by thefly.com, Rohit Vanjani – analyst at Guggenheim – told “investors the biosimilars pipeline is a differentiating factor and believes copies of Herceptin and Neulasta as potential nearer-term catalysts”. The Fly adds that Rohit Vanjani is also positive on diversified revenues of Mylan and on the strong company’s pipeline of Abbreviated New Drug Applications which are still at the U.S. Food and Drug Administration.
Mylan has an average target price of $43.65 per share, which is a 9.8% upside from the current share price of $39.77.
The recommendation rating is 2.1 out of 5.
Mylan has a market capitalization of $21.08 billion, a price-book (P/B) ratio of 1.58 versus an industry median of 2.86, a price-sales (P/S) ratio of 1.76 versus an industry median of 2.79 and a price-earnings (P/E) ratio of 24.08 versus an industry median of 25.41.
For the 52-weeks through December 12, Mylan gained 4% on the Nasdaq Stock Exchange. The 52 Week Range is $29.39 - $45.87.
The forward PE ratio is 7.38 versus an industry median of 19.53.
For full fiscal 2017 and 2018 analysts forecast Mylan will report an EPS of $4.54 and $5.34.
Disclosure: No positions in any stock mentioned in this article.
