Abbott Labs stock to acquire Exact Sciences for $21 billion

Investing.com - Abbott Labs (NYSE:ABT) will acquire Exact Sciences (NASDAQ:EXAS) for $105 per share, representing an equity value of approximately $21 billion, according to a reiterated Buy rating from Benchmark. With a market capitalization of $219 billion and an overall financial health score rated as "GREAT" by InvestingPro, Abbott appears well-positioned for this significant acquisition. The company is currently trading below its Fair Value, suggesting potential upside for investors.

The acquisition price represents a 7x multiple to Benchmark’s 2026 revenue estimate for Exact Sciences, which the firm notes is consistent with the stock’s 2023 peak multiple and the premium typically attached to molecular diagnostic companies.

Benchmark maintained its Buy rating and $145.00 price target on Abbott Labs following the announcement of the acquisition agreement.

Benchmark expects Exact Sciences to provide immediate sales and margin improvement for Abbott’s Diagnostics business while offering potential synergies.

The acquisition comes as Abbott Labs looks to strengthen its position in the diagnostics market, with Exact Sciences known for its molecular diagnostic products including cancer screening tests.

In other recent news, Abbott Laboratories has announced a definitive agreement to acquire Exact Sciences for $105 per share, with the transaction expected to close in the second quarter of 2026. This acquisition is projected to add approximately 300 basis points to Abbott’s Diagnostics segment growth. UBS has reiterated its Buy rating on Abbott Labs, raising its price target to $158, citing the sustainability of Abbott’s double-digit MedTech sales growth as a key factor. Benchmark also maintained its Buy rating with a $145 price target following Abbott’s third-quarter results, highlighting strong performance in its Medical Devices portfolio. Abbott’s third-quarter earnings report showed in-line results, with notable growth in its Diabetes Care and Electrophysiology segments. The company’s management has expressed confidence in meeting 2026 analyst estimates, which UBS views as a potential upside. These developments indicate Abbott’s strategic focus on expanding its diagnostics business and sustaining growth in its MedTech segment.

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