Abbott Labs jumps as Wall Street says new rapid test may be 'game changer'

A state-funded Covid-19 mobile testing site stands in Miami Beach, Florida, U.S., on Wednesday Aug. 5, 2020.
Jayme Gershen | Bloomberg | Getty Images

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Shares of Abbott Laboratories soared on Thursday after the company gained emergency authorization for a cheap, rapid Covid-19 test that Wall Street analysts are praising.

The company announced on Wednesday that the Food and Drug Administration had granted it an emergency use authorization for the test, which it says will cost $5 and can return results in 15 minutes. Abbott said it would ship tens of millions of tests next month and 50 million per month beginning in October. 

Analysts from Morgan Stanley and Bank of America said in notes to client that the stated accuracy of the tests was higher than other rapid tests. The stock rose 7.9%.