Abbott shares gain after JP Morgan upgrades them to overweight

JPMorgan Chase expects FreeStyle Libre to do almost $550 million in sales in 2017, on target to generate more than than $1.5 billion by 2022. The analyst forecasts $68 million in sales in 2018, with upside up to about $100 million if Abbott secures either commercial reimbursement, Medicare reimbursement, or labeling for kids earlier than expected.

Overall, JPMorgan Chase anticipates Abbott’s organic growth reaching 5.5 to 6 percent This kind of year. Weinstein will be forecasting sales of $30.51 billion, above Street expectations of $30.12 billion.

“In our view, This kind of’s the completely new product launches in which are not being forecasted correctly, with big discrepancies between our estimates as well as the Street’s in Diabetes (+$93M), Electrophysiology (+$66M), as well as Heart Failure (+$64M),” Weinstein wrote.

“While we are $60M ahead on Nutritionals, part of in which could be due to differences in FX [foreign exchange] as we product reported growth at +4.1% as well as FX-neutral growth at 2.8%,” he wrote. “We product Diabetes, Heart Failure, as well as Electrophysiology (in aggregate 13% of sales) growing at double-digit CAGRs [compound annual growth rates] through the end of the decade.”

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