AVTR - Abbott's revised guidance prompts model update for COVID-19 test makers at UBS

Abbott Laboratories ([[ABT]] +1.1%) is trading higher today after its downward revision to the 2021 guidance dragged the COVID-19 test makers across the board yesterday amid fears of slowing demand for tests as vaccinations continue.Highlighting its impact on companies reliant on PCR tests, UBS analysts Dan Brennan and John Sourbeer take stock of Abbott’s update which according to them was mostly related to the company’s rapid antigen tests.Noting that rapid antigen tests are well positioned compared to PCR tests for COVID-19 detection, Abbott’s update implying a sequential decline of ~64% in COVID-19 sales in H2 2021adds downside risk to its PCR universe, the analysts argue.For H2 2021, they now model a 40 – 50% sequential decline for COVID-19 revenue in its PCR universe: Danaher Corporation ([[DHR]] -0.6%), Thermo Fisher Scientific ([[TMO]] +0.9%), Hologic ([[HOLX]] +0.0%), PerkinElmer ([[PKI]] -0.9%), QIAGEN ([[QGEN]] -0.9%), Avantor ([[AVTR]] +0.6%).In the conference call that followed the updated guidance

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Abbott’s revised guidance prompts model update for COVID-19 test makers at UBS