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Investing.com - Jefferies has raised its price target on Abbott Labs (NYSE:ABT) stock to $146.00 from $141.00 while maintaining a Buy rating. According to InvestingPro analysis, Abbott Labs is currently trading below its Fair Value, with the stock showing a P/E ratio of 16.7x.
The firm cited accelerating growth in Abbott’s medical device segment, which represents approximately 50% of the company’s sales and operates at higher margins than other divisions. This key business unit is exceeding estimates and benefits from a robust pipeline of new products. The company’s overall financial health score is rated as "GREAT" on InvestingPro, with strong profitability metrics including a 56.1% gross margin.
Jefferies noted some "lumpiness" in Abbott’s other business segments, though it considers most of these challenges to be temporary. The firm specifically mentioned slowing growth in the Nutrition end market.
The research firm expects COVID-testing comparisons to become less challenging in 2026, which should result in cleaner reported growth figures for the company overall.
Jefferies continues to view Abbott Labs as a 7-8% organic revenue grower capable of delivering over 10% bottom-line growth, which it considers unique for a company in Abbott’s market capitalization range and supports its Outperform rating. The company has maintained dividend payments for 55 consecutive years, with a current yield of 1.82%. InvestingPro subscribers have access to 8 additional key insights about Abbott’s financial performance and market position.
In other recent news, Abbott Laboratories reported its third-quarter 2025 earnings, aligning with analysts’ expectations by posting an earnings per share (EPS) of $1.30. The company, however, slightly missed revenue projections, reporting $11.37 billion compared to the anticipated $11.4 billion. This revenue miss has raised concerns among investors about potential future growth challenges. Despite the earnings meeting expectations, the revenue shortfall has drawn attention. Analysts had predicted these earnings figures, which Abbott managed to meet, although the revenue miss remains a focal point. These developments are part of the ongoing assessment of Abbott Laboratories’ financial health and market performance.
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