Abbott Laboratories has agreed to resolve the Gill case and about 2,000 related necrotizing enterocolitis claims linked to its preterm infant formulas for roughly US$670 million. The settlement reframes investors' view of the company's legal overhang, and the stock has rebounded sharply, rising 13.18% over 30 days and 33.44% over 90 days. At a last close of $116.64, Abbott is framed as slightly undervalued versus a narrative fair value of $119.13, though its 37.4x P/E is above the US Medical Equipment industry average of 27.4x. Risks remain around pricing pressure in diagnostics and potential margin strain from tariffs and foreign exchange.
Abbott LaboratoriesSettlement resolves legal overhang, boosting investor sentiment.
