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Investing.com - Citi has lowered its price target on Abbott Labs (NYSE:ABT) to $155.00 from $157.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock appears undervalued, with analyst targets ranging from $120.12 to $159.00. The stock’s recent 8.31% decline over the past week has pushed its RSI into oversold territory.
The price target adjustment follows Abbott’s recent quarterly results, which showed sales of $11.14 billion, representing a 7.5% year-over-year organic growth excluding Covid-related revenue. The company reported earnings per share of $1.26, one cent above consensus estimates. The $216.82 billion market cap healthcare giant maintains strong fundamentals, with a P/E ratio of 15.55x and an impressive track record of maintaining dividend payments for 55 consecutive years.
Abbott’s performance was driven by stronger-than-expected results in its Medical (TASE:BLWV) Devices and Established Pharmaceuticals Division (EPD), but these gains were offset by increased headwinds in China Diagnostics and weaker anticipated Covid-19 sales. InvestingPro analysis reveals 12+ additional insights about Abbott’s performance and prospects, with the company maintaining a GREAT overall financial health score.
In response to these challenges, Abbott has reduced its 2025 organic sales growth guidance to 7.5-8.0% from the previous 7.5-8.5% range. The company also narrowed its earnings per share guidance to $5.10-$5.20 from $5.05-$5.25, eliminating the high end of the previous range.
Citi noted that while Abbott faces several guidance adjustments creating uncertainty, positive factors include lower anticipated tariff headwinds and easing foreign exchange pressures, which are being balanced against reduced Diagnostics sales expectations.
In other recent news, Abbott Laboratories reported second-quarter sales of $11.14 billion, marking a 6.9% increase from the previous year and slightly surpassing estimates from both Stifel and consensus projections. Earnings per share for the quarter were $1.26, marginally above expectations. Despite these results, Abbott Labs adjusted its full-year revenue growth guidance, citing challenges in its diagnostics business due to China’s volume-based procurement. The company now forecasts 2025 revenue growth between 7.5% and 8.0%, down from the previous range of 7.5% to 8.5%, and narrowed its earnings per share guidance to $5.10-$5.20.
Several analyst firms have responded to these developments. Jefferies upgraded Abbott from Hold to Buy, citing potential for accelerated growth in 2026, while maintaining a price target of $145. Mizuho (NYSE:MFG) lowered its price target to $135, maintaining a Neutral rating, and noted the guidance reduction was influenced by headwinds in the Diagnostics segment and other areas. BTIG also reduced its price target to $145, maintaining a Buy rating, and described the challenges in China as temporary. Evercore ISI adjusted its price target to $140, retaining an Outperform rating, and highlighted Abbott’s strong performance in key products despite market concerns. These recent developments reflect a mix of cautious optimism and acknowledgment of near-term headwinds for Abbott Laboratories.
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