Wells Fargo has adjusted its price target for Abbott (ABT, Financial), reducing it from $147 to $142 while maintaining an Overweight rating. This decision follows Abbott's latest quarterly report, revealing sales and earnings per share in line with expectations for the second quarter. However, the company has revised its 2025 organic sales growth projections downward due to temporary challenges within its diagnostics segment. Despite these adjustments, the firm's outlook for 2026 remains unchanged.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Abbott Laboratories (ABT, Financial) is $143.05 with a high estimate of $159.00 and a low estimate of $120.12. The average target implies an upside of 18.71% from the current price of $120.51. More detailed estimate data can be found on the Abbott Laboratories (ABT) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Abbott Laboratories's (ABT, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Abbott Laboratories (ABT, Financial) in one year is $121.36, suggesting a upside of 0.71% from the current price of $120.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Abbott Laboratories (ABT) Summary page.
ABT Key Business Developments
Release Date: July 17, 2025
- Sales Growth: 6.9% increase; 7.5% excluding COVID testing sales.
- Adjusted Earnings Per Share (EPS): $1.26, 11% growth compared to prior year.
- Gross Margin: 57% of sales, 100 basis points increase from prior year.
- Operating Margin: 22.9% of sales, 100 basis points increase from prior year.
- Nutrition Sales Growth: 3.5% increase in the quarter.
- Diagnostics Sales Decline: 1.5% decrease, impacted by COVID testing sales decline and China procurement programs.
- EPD Sales Growth: Nearly 8% increase, surpassing $1 billion in quarterly sales.
- Medical Devices Sales Growth: 12% increase, driven by diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management.
- Diabetes Care Sales: $1.9 billion, 19.5% growth.
- Heart Failure Sales Growth: 14% increase in the quarter.
- Foreign Exchange Impact: Favorable 0.5% impact on second quarter sales.
- R&D and SG&A Expenses: Adjusted R&D at 6.3% of sales; adjusted SG&A at 27.7% of sales.
- Third Quarter EPS Forecast: $1.28 to $1.32.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Abbott Laboratories (ABT, Financial) reported high single-digit sales growth and over 100 basis points of margin expansion in both gross and operating margins.
- The company achieved double-digit earnings per share growth, exceeding consensus estimates.
- Sales in the Nutrition segment increased by 3.5%, driven by strong demand for Ensure and Glucerna brands.
- Medical Devices sales grew by 12%, with significant contributions from diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management.
- Abbott Laboratories (ABT) is making progress in its biosimilars portfolio, with 10 regulatory approval submissions completed and launches projected to begin in 2026.
Negative Points
- Diagnostics sales declined by 1.5% due to a decrease in COVID testing sales and volume-based procurement programs in China, representing a significant headwind.
- The company faces challenges in the China Core Lab market, impacting overall sales growth.
- There are ongoing headwinds from COVID testing sales drop-off and changes in US funding for HIV testing.
- Abbott Laboratories (ABT) is experiencing a $200 million impact from tariffs, which is affecting its financial performance.
- Foreign exchange remains a headwind on the bottom line, despite being neutral on the top line.
