NEW YORK (Reuters) - Abbott Laboratories (N:ABT) is likely to see its shares rise again after trading range-bound for nearly a year on the back of its $25 billion acquisition of medical device-maker St. Jude Medical, Barron's said on Sunday.
The global healthcare company, based in Abbott Park, Illinois, has seen its stock trade between $37 and $45 for a year, as investors remain concerned over currency headwinds given the company's global business and its St. Jude acquisition.
However, the uncertainty has also created an opportunity to buy inexpensive shares of a company with a "proven track record and a good shot at continuing its double-digit earnings growth," the report said, adding that a 20 percent return is credible over a year.
The St. Jude deal, which closed last month, has weighed on the stock, with some investors questioning whether Abbott overpaid for a company that's seen a history of delayed product launches. However, the acquisition pushes Abott's profile more towards the U.S. market, which should ease concerns about the strength of the dollar.
Also, a number of St. Jude legacy products are expected to win federal approval later this year following the green light on its Assurity MRI pacemaker earlier this month.