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AnalystConsensusTarget updated the narrative for ABT

Update shared on 31 Oct 2025

Fair value Increased 0.042%
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AnalystConsensusTarget's Fair Value
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8.4%
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Abbott Laboratories' average analyst price target experienced a modest increase to approximately $144.47. Analysts cited positive legal developments and continued momentum in the Medical Devices segment as key factors supporting the adjustment.

Analyst Commentary

Recent research updates on Abbott Laboratories highlight a variety of perspectives regarding the company’s future outlook, valuation, and execution across its key business segments.

Bullish Takeaways
  • Bullish analysts point to favorable legal outcomes in the ongoing multidistrict litigation over infant formula products. This is suggested to serve as a positive precedent and may reduce future legal uncertainty.
  • The company's Medical Devices segment continues to demonstrate strong operating momentum, with underlying performance supporting optimism for continued growth.
  • Abbott's diversified business model, spanning multiple therapies, technologies, and geographies, is viewed as providing a resilient foundation for sustainable mid-single digit sales growth and double-digit adjusted EPS increases.
  • International expansion and exposure to high-demand healthcare sectors are expected to help offset macroeconomic uncertainty and bolster long-term growth prospects.
Bearish Takeaways
  • Some bearish analysts have noted a slight reduction in price targets, reflecting headline numbers that fell just short of expectations in recent results.
  • Despite overall gains, certain segments within the business are experiencing varied performance and some lumpiness. This has led to a more cautious near-term outlook.
  • While core growth rates remain attractive, elevated expectations may place pressure on valuation if the company fails to consistently outperform consensus estimates.

What's in the News

  • Abbott repurchased 2,348,997 shares between July 1 and July 31, 2025 for $293.06 million, completing a $5 billion share buyback program that began in December 2021 (Buyback Tranche Update).
  • The company reaffirmed its 2025 organic sales growth guidance of 7.5% to 8.0% (excluding COVID-19 testing) and narrowed its expected adjusted diluted EPS range to $5.12 to $5.18, reflecting double-digit growth at the midpoint (Corporate Guidance).
  • Health Canada authorized the Esprit BTK System, a first-of-its-kind dissolvable stent for treating chronic limb threatening ischemia below the knee. Clinical trial data showed improved outcomes and fewer repeat procedures compared to balloon angioplasty (Product-Related Announcements).
  • Abbott is reported to be in discussions to purchase Synlait Milk Limited's Pokeno plant in New Zealand, a facility for plant-based milk production, as part of Synlait's ongoing asset review (M&A Rumors and Discussions).

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from $144.40 to $144.47, reflecting a modest upward adjustment in fair value assessments.
  • Discount Rate has increased marginally from 7.50% to 7.58%. This indicates a slightly higher return expectation or perceived risk level among analysts.
  • Revenue Growth projection has climbed modestly from 7.43% to 7.49%. This suggests improved optimism for top-line expansion.
  • Net Profit Margin is down slightly from 18.01% to 17.99%, representing a very minor decline in expected profitability.
  • Future P/E ratio has inched up from 32.85x to 32.93x, which points to a minimal increase in projected market valuation multiples.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.