Baby Formula Shortages Are Bad for Parents. They Could Be Good for Abbott Stock. | ABT Message Board Posts


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Msg  79 of 82  at  5/13/2022 12:52:24 PM  by

jerrykrause


Baby Formula Shortages Are Bad for Parents. They Could Be Good for Abbott Stock.

Baby Formula Shortages Are Bad for Parents. They Could Be Good for Abbott Stock.
 

Shortages of baby formula have been a major concern for parents everywhere, and have even attracted the attention of the White House . That's good news for Abbott Laboratories stock.

Abbott (ticker: ABT) stock has not done well in 2022. In fact, coming into the open on Friday, shares for the healthcare products company have fallen 23.3% year to date.

The baby formula shortage has been an ongoing issue for parents for months, caused by supply-chain shortages affecting consumer goods everywhere. This issue was made worse by the recall of powder formulas by Abbott in February.

Cowen analyst Joshua Jennings wrote in a note that amid this crisis, Abbott's formulas "should be welcomed back by customers without any lasting brand damage to ABT" and "the urgent need created by the shortage will allow the company to sidestep potential problems it likely would encounter if customers presently had more substitute options available to them."

As reported by The Wall Street Journal , on Wednesday, Abbott announced that subject to FDA approval, it could resume production of infant formula within two weeks . Abbott stock has climbed 3.5% from the announcement Wednesday to Friday morning's early trading, where shares have risen 0.4% to $108.41.

Whether the return of baby formula is enough to keep the rally going remains to be seen.

 


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