Loading...
Back to narrative

ABT: Momentum From Legal Win And Product Approvals Will Support Future Gains

Update shared on 14 Nov 2025

n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
5.7%
7D
-4.1%

Analysts have modestly revised their price targets for Abbott Laboratories, with recent updates ranging from $142 to $146 per share. They cite strong momentum in Medical Devices and a resilient, diversified business model, despite varied performance across business segments.

Analyst Commentary

Recent analyst research on Abbott Laboratories reflects a nuanced outlook, balancing pockets of strength with areas that warrant caution. The following summarizes key bullish and bearish perspectives based on updated price targets and sector commentary.

Bullish Takeaways

  • Dismissal of a bellwether legal case related to infant formulas is seen as a positive catalyst. This development helps reduce litigation overhang and sets a favorable precedent for future cases.
  • Abbott’s diverse business operations, spanning multiple geographies and health care sectors, provide resilience and stability. This diversity helps the company weather broader macroeconomic uncertainties.
  • The Medical Devices division remains a source of strong momentum, supporting optimism for sustainable mid-single-digit sales growth and double-digit bottom-line expansion.
  • Despite variable performance in some segments, underlying organic revenue growth continues to meet or exceed consensus expectations. This underpins ongoing confidence in the company's execution and growth trajectory.

Bearish Takeaways

  • Analysts have modestly lowered near-term price targets, citing headline results that fell short of expectations even as underlying trends remain positive.
  • While Medical Devices is accelerating, performance in other segments is described as "lumpy." This suggests uneven execution and some volatility in quarterly results.
  • Continued macroeconomic uncertainty could pressure growth in certain geographies or market segments. This poses a risk to the pace of recovery and expansion.

What's in the News

  • Abbott completed a tranche of its ongoing share buyback program, repurchasing 2,348,997 shares for $293.06 million in July 2025, and has now bought back a total of 45,863,361 shares since December 2021 (Key Developments).
  • From July through September 2025, the company repurchased an additional 76,003 shares for $9.48 million as part of a separate buyback announced in October 2024 (Key Developments).
  • Abbott reaffirmed its 2025 guidance, projecting 7.5% to 8.0% organic sales growth (excluding COVID-19 testing-related sales) and narrowing its EPS guidance range to $5.12 to $5.18, which represents double-digit growth at the midpoint (Key Developments).
  • Health Canada has approved the Esprit BTK System, Abbott’s first-of-its-kind dissolvable stent for treating chronic limb threatening ischemia below the knee. The device has demonstrated improved outcomes and fewer repeat procedures in clinical trials (Key Developments).
  • Abbott is reportedly in discussions to acquire Synlait Milk Limited’s Pokeno manufacturing facility in New Zealand. This acquisition would expand its nutrition manufacturing footprint (Key Developments).

Valuation Changes

  • Fair Value Estimate remains stable at $144.47 per share, reflecting no change from prior assessments.
  • Discount Rate has risen slightly to 7.83%, up from 7.58%. This indicates a modest increase in perceived risk or uncertainty.
  • Revenue Growth projections are virtually unchanged, now at 7.49% compared to the previous 7.49%.
  • Net Profit Margin remains effectively steady at 17.99%, with an immaterial decrease from prior estimates.
  • Future P/E Ratio has fallen modestly to 32.40x from 32.93x. This represents a slight decrease in forward 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.