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Investing.com - RBC Capital has reiterated an Outperform rating and $147.00 price target on Abbott Labs (NYSE:ABT), a $225 billion healthcare giant with an "GREAT" InvestingPro Financial Health score, following the company’s mixed third-quarter results.
Abbott Labs shares declined 2.4% after reporting a topline miss, which RBC attributed to "multiple transient factors," while delivering earnings per share in line with expectations. The company maintains strong fundamentals with a 56.1% gross profit margin and healthy revenue growth of 6.4% over the last twelve months.
The healthcare company indicated comfort with consensus 2026 estimates, which project 7.5% organic revenue growth and 10% earnings per share growth, according to RBC analyst Shagun Singh.
RBC maintained its positive outlook on Abbott, citing "underlying business momentum" and favorable positioning heading into 2026 due to a strong base business and growth accelerators including diabetes products, PFA launch, and CRM.
The firm characterized recent challenges as "transitory Q3 headwinds" and suggested that the stock dip creates an opportunity for investors in what it described as "a high-quality MedTech company."
In other recent news, Abbott Laboratories reported its third-quarter earnings for 2025, with an earnings per share (EPS) of $1.30, aligning with analysts’ expectations. The company’s revenue came in at $11.37 billion, slightly below the anticipated $11.4 billion. This revenue miss has sparked some investor concerns about potential growth challenges. Despite this, Abbott’s medical device segment, which constitutes about half of the company’s sales, is experiencing accelerating growth and surpassing estimates. Both Wells Fargo and Jefferies have raised their price targets for Abbott Labs to $146, with Wells Fargo maintaining an Overweight rating and Jefferies a Buy rating. The medical device unit’s robust pipeline of new products and higher margins are contributing to its strong performance. These developments reflect ongoing confidence in the company’s future prospects, particularly within its medical technology division.
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