Piper Sandler maintains Overweight on Abbott Labs with $133 target

Published 04/04/2025, 13:58
Piper Sandler maintains Overweight on Abbott Labs with $133 target

On Friday, Piper Sandler expressed continued confidence in Abbott Laboratories (NYSE:ABT), maintaining an Overweight rating and a $133.00 price target for the company’s stock. According to InvestingPro data, Abbott’s current market capitalization stands at $228.29 billion, with the stock trading at $131.63, showing a strong 22% return over the past year. The firm’s analyst, Adam Maeder, highlighted results from a recent survey of interventional cardiologists, which suggested that Abbott could see an increase in its market share within the structural heart space.

The survey, which included 20 cardiologists, indicated expectations for Abbott to achieve approximately 8% market share in 2025 and 11% in 2026. These figures surpass Piper Sandler’s Transcatheter Aortic Valve Replacement (TAVR) model predictions, which estimated Abbott would secure around 3.0% U.S. market share in 2025 and 4.0% in 2026. This discrepancy led the analyst to consider the possibility that their forecast might be conservative. InvestingPro analysis reveals Abbott’s strong financial health score of 3.14 (rated "GREAT"), supporting its potential for market expansion.

Maeder’s commentary pointed out that the survey’s findings were particularly favorable for Abbott, while the outlook for companies with a neutral rating was more varied due to a combination of factors affecting the TAVR market. Despite these mixed signals, Piper Sandler’s stance on Abbott’s stock remains positive.

The analyst emphasized the underappreciation of Abbott’s structural heart business by investors, predicting it will be instrumental in driving double-digit growth in the medical technology sector. Abbott’s share in this market is seen as a key factor in the company’s overall growth trajectory, positioning it as an attractive option for Growth at a Reasonable Price (GARP) within the large-cap space. Piper Sandler’s endorsement reflects a belief in the company’s potential for sustained growth and market leadership. With a P/E ratio of 17.21 and revenue growth of 4.59%, InvestingPro analysis suggests Abbott is currently undervalued, with 12 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, Abbott Laboratories announced several significant developments. The company received CE Mark approval for its Volt PFA System, designed for atrial fibrillation treatment, allowing commercial cases to begin in the European Union ahead of schedule. This milestone was reflected in analyst actions, with Oppenheimer maintaining an Outperform rating with a $134 price target and BTIG reaffirming a Buy rating with a $140 target. Both firms highlighted the early approval as a positive indicator for potential U.S. regulatory progress. Additionally, Abbott is conducting the TECTONIC clinical trial for its Coronary Intravascular Lithotripsy System, following FDA approval for an investigational device exemption. This trial aims to assess the system’s efficacy in treating severe arterial calcification in coronary artery disease patients. Furthermore, TD Cowen maintained a Buy rating and a $135 target for Abbott, noting the company’s strong position despite recent industry developments related to infant formula regulations. Abbott’s proactive efforts in maintaining full production capacity post-2022 issues at its Sturgis facility were emphasized as aligning with the new Operation Stork Speed initiative.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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