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On Thursday, Raymond (NSE:RYMD) James analyst Jayson Bedford increased the price target for Abbott Laboratories (NYSE:ABT) shares to $142 from $132, while maintaining an Outperform rating on the stock. Bedford highlighted the company’s solid underlying first-quarter results and the reiteration of its 2025 earnings per share (EPS) guidance as positive indicators, despite facing approximately $0.17 of incremental tariff expenses. According to InvestingPro data, Abbott’s stock has already delivered a strong 15.8% return year-to-date, with analysts’ targets ranging from $111 to $158.
Bedford noted that a weaker U.S. dollar helps to mitigate the impact of the tariffs, suggesting that the company’s guidance reflects confidence in its financial model. The first quarter marked the second consecutive quarter of high-single-digit organic revenue growth and double-digit EPS growth for Abbott Labs. With annual revenue reaching $41.95 billion and an impressive gross profit margin of 55.56%, the company demonstrates strong operational efficiency. Furthermore, the guidance for the second quarter suggests that the company is on track to continue this growth pattern. InvestingPro analysis shows Abbott maintains a "GREAT" financial health score, supported by its moderate debt levels and strong cash flows.
The analyst’s commentary underscores Abbott Labs’ diversified product portfolio and consistent performance as factors contributing to its strong growth profile within its market cap range. The company’s commitment to shareholder returns is evident in its 55-year streak of maintaining dividend payments, with a current dividend yield of 1.82%. According to Bedford, these attributes support the decision to maintain an Outperform rating for the healthcare company’s shares. Get deeper insights into Abbott’s valuation and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.
Abbott Laboratories’ consistent execution and top-tier growth profile are particularly noteworthy within the context of its market cap range. The company’s ability to navigate tariff expenses while still projecting robust growth is seen as a testament to its operational strength.
The updated price target of $142 represents Raymond James’ confidence in Abbott Labs’ future performance and the potential for the stock to deliver value to investors. This adjustment reflects the firm’s analysis of the company’s financial results and market position.
In other recent news, Abbott Laboratories reported its first-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $1.09, exceeding the forecast of $1.07. Despite a slight revenue miss, with $10.36 billion reported against the expected $10.4 billion, the company maintained its full-year guidance, projecting high single-digit organic sales growth. Abbott also reaffirmed its commitment to sustaining revenue growth, citing its diversified business model and robust product pipeline as key strengths. The firm has been proactive in addressing potential tariff impacts, estimating a cost of several hundred million dollars in 2025, and is exploring strategies to mitigate these costs.
In terms of analyst activity, BTIG raised Abbott’s price target to $145, maintaining a Buy rating, while Evercore ISI increased their target to $140, citing the company’s resilience and financial flexibility. Both firms highlighted Abbott’s strong start to the year and its ability to manage earnings per share effectively amidst market uncertainties. Abbott’s management has emphasized the importance of its global manufacturing network in offsetting tariff impacts and maintaining investments in research and development.
Additionally, Abbott launched several innovative products, including the Vault PFA system for atrial fibrillation, contributing to its strategic focus on innovation. The company’s strong balance sheet and low net leverage, approximately 0.5 times, were praised by analysts as providing additional financial flexibility. Abbott’s continued performance and strategic initiatives reflect investor confidence, as evidenced by the stock’s positive movement following the earnings announcement.
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