Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Thursday, Piper Sandler analyst Adam Maeder increased the price target for Abbott Labs (NYSE:ABT) shares to $145 from $133, while maintaining an Overweight rating. The adjustment follows Abbott’s first-quarter results, which showcased a beat on adjusted earnings per share (EPS) but a slight miss on revenue expectations, attributed to weaker-than-anticipated COVID-19 testing sales. The healthcare giant, with a market capitalization of $226 billion, is currently trading near its InvestingPro Fair Value, while maintaining an impressive YTD return of 15.8%.
Abbott reported a year-over-year organic growth of 6.9% and an 8.3% increase when excluding foreign exchange and COVID-19 testing sales. Notably, the company saw a 12.6% growth in medical devices, excluding foreign exchange impacts, surpassing Piper Sandler’s projections. With total revenue reaching $42.34 billion and trading at a P/E ratio of 16.95, Abbott continues to demonstrate strong financial performance. Additionally, Abbott reaffirmed its full-year 2025 guidance for top-line growth of 7.5-8.5% on an organic basis and adjusted EPS in the range of $5.05 to $5.25. This guidance takes into consideration the potential effects of tariffs. InvestingPro data reveals 10+ additional investment insights about Abbott’s valuation and growth prospects.
Maeder’s remarks highlighted the company’s robust performance in the medical technology (medtech) sector and the benefits of its diversified business operations. Despite uncertainties related to ongoing tariffs, the analyst expressed confidence in Abbott’s ability to navigate these challenges. According to Maeder, Abbott Labs stands out as a prime investment opportunity for growth at a reasonable price (GARP) within the large-cap medtech space.
The reaffirmed financial guidance and the strong growth in medical devices are seen as positive indicators for Abbott’s future performance. Piper Sandler’s revised price target reflects a belief in the company’s continued success and its strategic positioning in the market.
In other recent news, Abbott Laboratories reported first-quarter sales of $10.36 billion for 2025, a 6.9% increase year-over-year, slightly missing the consensus estimate of $10.41 billion. The company’s earnings per share (EPS) for the quarter were $1.09, surpassing both the Stifel and consensus estimates of $1.07. Abbott’s Medical (TASE:BLWV) Devices division showed strong performance with a 12.6% year-over-year increase, highlighted by notable growth in Diabetes care and Structural Heart. Analysts from Stifel, Oppenheimer, Raymond (NSE:RYMD) James, BTIG, and Evercore ISI have all adjusted their price targets for Abbott, citing various factors such as tariff impacts and the company’s diversified business model. Stifel reduced its target to $135 but maintained a Buy rating, while Oppenheimer raised its target to $140 with an Outperform rating. Raymond James increased its target to $142, also maintaining an Outperform rating, while BTIG raised its target to $145, keeping a Buy rating. Evercore ISI adjusted its price target to $140, citing Abbott’s resilience and financial flexibility. Abbott has reaffirmed its full-year 2025 guidance, projecting organic revenue growth between 7.5% and 8.5% and an EPS range of $5.05 to $5.25.
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