Abbott shares rose 3 percent Tuesday after J.P. Morgan Chase upgraded the stock and raised its price target, citing growth potential from the company's new products.
The firm upgraded Abbott to overweight from neutral and raised its year-end price target to $65 from $60. Shares were at $58.98 in early trading Tuesday.
Abbott could benefit from the U.S. launch of five products: the FreeStyle Libre glucose monitoring system, the Alinity family of next-generation core lab systems, the HeartMate 3 left ventricular assist system, the Confirm Rx implantable cardiac monitor, and the MRI-compatible implantable cardioverter-defibrillator and cardiac resynchronization therapy defibrillators, analyst Michael Weinstein wrote in a note.
FreeStyle Libre offers the most room for upside, Weinstein said. The product is the first continuous glucose monitoring system on the market that doesn't require patients to prick their finger to draw blood.
It's one development in an area that's ripe with change and innovation. Abbott is aggressively pricing and marketing the product, probably to take advantage of its window as the only product of its kind. Rival Dexcom expects to introduce its own sensor that wouldn't require fingerpricks by the end of 2018.