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On Thursday, Oppenheimer analysts adjusted their financial outlook for Abbott Laboratories (NYSE:ABT), raising the price target from $134.00 to $140.00 while sustaining an Outperform rating on the stock. The adjustment follows Abbott’s first-quarter revenue report, which showed earnings that aligned with analyst projections and a solid performance in the Medical (TASE:BLWV) Devices sector. According to InvestingPro data, Abbott maintains a "GREAT" financial health score and has demonstrated its stability with 55 consecutive years of dividend payments. The company, currently valued at $225 billion, has seen its stock rise 15.8% year-to-date.
Abbott Laboratories reported first-quarter revenues of $10.36 billion, marking a 6.9% organic increase year-over-year. This figure slightly missed the expectations set by Oppenheimer and the consensus estimates, which were $10.63 billion and $10.41 billion, respectively. The GAAP earnings per share (EPS) came in at $0.76, matching Oppenheimer’s forecast and closely aligning with the consensus estimate of $0.78. The company’s consistent performance is reflected in its trailing twelve-month revenue of $42 billion, with a healthy gross profit margin of 55.6%. Want deeper insights? InvestingPro offers comprehensive analysis with 8 additional key tips about Abbott’s financial strength and market position.
The company’s Medical Devices revenue stood out with $4.90 billion, experiencing an organic growth of 12.6%. Noteworthy developments include the EU CE-Mark approval for Abbott’s PFA-VOLT catheter, with U.S. approval anticipated between late 2025 and early 2026. Additionally, a pivotal trial for the company’s Coronary Intravascular Lithotripsy (IVL) has begun, with enrollment expected to be completed in 2026. As a prominent player in the Healthcare Equipment & Supplies industry, Abbott trades at a P/E ratio of 16.5x, which InvestingPro analysis suggests is attractive relative to its near-term earnings growth potential.
Abbott has reiterated its full-year 2025 organic growth forecast, anticipating a 7.5% to 8.5% increase, and has projected an adjusted EPS in the range of $5.05 to $5.25. For the second quarter, the company has guided an adjusted EPS of $1.23 to $1.27, which is in line with the consensus estimate of $1.25. This outlook aligns with the company’s track record of steady growth, supported by strong cash flows and moderate debt levels, as highlighted in InvestingPro’s detailed financial health assessment.
The company also cautioned that tariffs are expected to have a few-hundred-million-dollar impact on the second half of 2025. Oppenheimer’s revised outlook is based on the assumption that non-Medical Technology headwinds will subside, providing easier comparisons in fiscal year 2026, and that top-line composite growth will accelerate to low double digits, along with an improvement in EBIT margins. Following the first-quarter results and the full-year 2025 guidance, Oppenheimer has adjusted its estimates and set a new price target for Abbott Laboratories.
In other recent news, Abbott Laboratories reported its first-quarter 2025 earnings, exceeding expectations with an adjusted earnings per share (EPS) of $1.09, surpassing the forecast of $1.07. Despite a slight revenue miss, the company maintained its full-year guidance, projecting high single-digit organic sales growth. Abbott’s management also highlighted a gross margin increase of 140 basis points to 57.1%, showcasing improved profitability. The company reaffirmed its 2025 guidance despite potential tariff impacts, and analysts from BTIG and Evercore ISI raised their price targets to $145 and $140 respectively, citing Abbott’s resilience and diversified business model. Raymond (NSE:RYMD) James also increased Abbott’s price target to $142, maintaining an Outperform rating due to the company’s strong growth profile and strategic initiatives. The ongoing efforts to mitigate tariff expenses and leverage its global manufacturing network were emphasized as key strategies for sustaining growth. Abbott’s management expressed confidence in maintaining financial guidance while continuing to invest in innovation and research. These developments indicate a positive outlook for Abbott Laboratories in the current economic climate.
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