Asia FX muted despite Fed cut bets; Japanese yen slides after PM Ishiba resigns
Investing.com - Piper Sandler has reiterated an Overweight rating on Abbott Laboratories (NYSE:ABT) with a price target of $150.00, citing underappreciated growth catalysts in the company’s diabetes business. The healthcare giant, currently valued at $231 billion, maintains a "GREAT" financial health score according to InvestingPro analysis, with strong profitability metrics and consistent dividend payments for 55 consecutive years.
The firm highlighted Abbott’s upcoming dual-analyte sensor that measures both glucose and ketone levels, which is expected to launch in the first half of 2026. Piper Sandler believes the market is not fully valuing this innovation or Abbott’s partnership with Medtronic in current consensus estimates. The company has demonstrated solid execution with 5.85% revenue growth over the last twelve months, while maintaining relatively low price volatility.
Current Wall Street projections show Abbott’s U.S. diabetes revenue growth decelerating from 22.9% year-over-year in 2025 to 18.1% in 2026. Piper Sandler expects growth to "come in comfortably above the 20% level" instead, suggesting potential upside to consensus forecasts.
The research firm noted that Abbott’s stock trades at approximately 23.4 times 2026 consensus earnings per share, which it considers "very palatable" given the company’s growth profile.
Piper Sandler identified Abbott as its "favorite large-cap name," citing expectations for high-single-digit top-line growth and low-double-digit adjusted earnings per share growth over the long term.
In other recent news, Abbott Labs reported its quarterly results with sales reaching $11.14 billion, marking a 7.5% year-over-year organic growth, excluding COVID-related revenue. The company also posted earnings per share of $1.26, slightly surpassing consensus estimates. However, Abbott Labs has lowered its full-year 2025 revenue growth forecast to 7.5%-8.0% due to challenges in its diagnostics business, particularly from China’s volume-based procurement. This adjustment has led to a revised earnings per share guidance of $5.10-$5.20.
In response to these developments, Citi has lowered its price target for Abbott Labs to $155, maintaining a Buy rating. Similarly, Mizuho adjusted its price target to $135 while keeping a Neutral rating. On a positive note, Jefferies upgraded Abbott Labs from Hold to Buy, raising its price target to $145, citing a positive growth outlook despite recent guidance cuts. UBS also reiterated its Buy rating and $148 price target, highlighting strength in Abbott’s MedTech division, which reported 12.2% organic growth in the second quarter, exceeding expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.