Analyst Note| Debbie Wang |
Narrow-moat Abbott reported full-year results that modestly outpaced our expectations on the top line, but this was offset by slightly lower profitability than we’d estimated. This was a wash on our valuation and we’re leaving our fair value estimate unchanged. Based on fourth-quarter performance, Abbott remains in the midst of steering through the decline in demand for pandemic-related diagnostics and the early stages of recovering from the U.S. infant formula recall. Fortunately, the firm is well-armed with a range of new devices that should provide some ballast.