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On Wednesday, Mizuho (NYSE:MFG) Securities sustained its Neutral stance on Abbott Laboratories (NYSE:ABT), with a consistent price target of $130.00. According to InvestingPro data, analyst targets range from $111.34 to $158.00, with the stock currently trading near $126. The company’s Financial Health Score stands at "GREAT," supported by strong cash flows and moderate debt levels. The decision follows Abbott’s revenue shortfall of $43 million, which was somewhat mitigated by a $0.02 surplus in adjusted earnings per share (EPS). The company’s performance was buoyed by its Medical (TASE:BLWV) Technology (Medtech), Nutrition, and Pharmaceuticals divisions, which balanced a significant shortfall in its Diagnostics business. With a robust gross profit margin of 55.6% and revenue growth of 4.6% over the last twelve months, Abbott maintains its position as a prominent player in the Healthcare Equipment & Supplies industry. Get deeper insights into Abbott’s financial performance with a comprehensive Pro Research Report, available exclusively on InvestingPro.
Medtech’s revenue surpassed expectations, recording $4.90 billion against the anticipated $4.86 billion, marking a robust 13% organic growth—up from 14% in the previous quarter. This surge was led by notable results in Electrophysiology, which yielded $629 million in revenue, exceeding the forecast of $620 million. Meanwhile, the Diagnostics division underperformed, bringing in $2.05 billion compared to the projected $2.19 billion. This represented a 5% decrease in organic growth, a downturn from the 1% growth seen in the third quarter, attributed to general overseas weakness and a shift in market share within the United States.
Abbott Laboratories maintained its full-year 2025 outlook, projecting an 8% increase in top-line organic growth and an adjusted EPS of $5.15 at the midpoint. The company’s press release did not address potential impacts from global tariffs. Market observers are now focusing on several critical areas, including Abbott’s exposure to global tariffs, pressures on the Diagnostics segment, the momentum of its Libre product, the awaited Volt PFA CE Mark clearance, market dynamics in China, and the ongoing litigation concerning necrotizing enterocolitis (NEC). InvestingPro subscribers can access additional insights, including 10+ exclusive ProTips covering Abbott’s dividend history, valuation metrics, and financial stability indicators.
In other recent news, Abbott Laboratories has made significant strides with its Volt balloon-in-basket pulsed-field-ablation (PFA) system, receiving CE Mark approval in the European Union. This approval allows the company to begin commercial cases in the EU, ahead of their initial projections. Analysts from Oppenheimer noted the importance of this regulatory milestone, which might suggest a faster timeline for U.S. approval. In the realm of financial performance, Abbott has reported strong growth across its divisions, with the Medical Devices segment showing notable improvements. The Diagnostics division grew by 6.1%, Nutrition by 7.1%, and the Established Pharmaceuticals Division (EPD) by 8.5% in the fourth quarter.
Analysts from Stifel and TD Cowen have maintained their Buy ratings on Abbott, with price targets of $135, citing promising developments in the company’s product offerings and market positioning. TD Cowen’s analyst, Joshua Jennings, expects Abbott to meet or exceed earnings estimates, driven by new product rollouts like TriClip in the U.S. and Volt in Europe. Oppenheimer also reiterated an Outperform rating, with a $134 target, expressing confidence in Abbott’s potential for growth in the evolving electrophysiology market. Piper Sandler’s analyst, Adam Maeder, maintained an Overweight rating with a $133 target, highlighting Abbott’s potential to increase its market share in the structural heart space. These developments underscore Abbott’s strategic advancements and position in the healthcare market.
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