Analysts have modestly increased their price target for Abbott Laboratories from $142.48 to $144.40, citing resilient growth in medical devices and expectations for steady double-digit earnings growth, even though there may be some near-term variability across business segments.

Analyst Commentary

Recent research notes reflect a mix of optimism and caution from analysts following Abbott Laboratories' latest results and updates to price targets. The company's strength in medical devices and its diversified business model were highlighted, while some near-term challenges were noted.

Bullish Takeaways

• Bullish analysts point to Abbott’s accelerating growth in medical devices. This is driving confidence in sustained double-digit bottom-line growth.
• The company’s diversified model, with exposure to numerous therapies and international markets, is seen as a strong foundation to mitigate macroeconomic uncertainty.
• Organic revenue growth is expected to remain robust at 7% to 8%, which supports higher earnings potential and increases the long-term valuation.
• Momentum within the medtech sector and ongoing execution in high-demand healthcare segments are viewed as indicators that could support upward price target revisions.

Bearish Takeaways

• Bearish analysts note recent revisions to sales guidance and highlight potential headwinds from slowing diagnostics growth and segment volatility.
• Some headline figures slightly missed expectations. This raises near-term caution about overall business momentum and execution risks.
• Share selloffs following the Q2 report suggest that investor sentiment could remain mixed. Potential rebounds may be gradual rather than immediate.
• Idiosyncratic issues in certain divisions, while considered transitory, have led to slightly lower price targets and a more neutral stance on the valuation outlook.

What's in the News

• Abbott reaffirmed its 2025 earnings guidance, maintaining organic sales growth expectations of 7.5% to 8.0% excluding COVID-19 testing, and 6.0% to 7.0% including COVID-19 testing. The adjusted diluted EPS guidance range is narrowed to $5.12 to $5.18, reflecting double-digit growth at the midpoint (Company guidance).
• Health Canada approved the Esprit BTK System, Abbott’s first-of-its-kind dissolvable stent for patients with chronic limb threatening ischemia below the knee. Clinical trial results show improved outcomes and nearly half the repeat procedures compared to standard angioplasty (Product announcement).
• Abbott is reportedly in discussions to acquire Synlait Milk’s Pokeno manufacturing facility in New Zealand, which produces plant-based milk products. This potential deal follows Synlait's strategic asset review (M&A discussions).
• Abbott completed the previously announced share repurchase program, having repurchased over 43 million shares for nearly $4.7 billion (Share buyback update).

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $142.48 to $144.40.
• Discount Rate has fallen modestly, moving from 7.61% to 7.50%.
• Revenue Growth expectation has increased marginally, rising from 7.34% to 7.43%.
• Net Profit Margin forecast has improved from 17.55% to 18.01%.
• Future P/E ratio estimate has edged down, declining from 33.05x to 32.85x.