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On Thursday, TD Cowen reaffirmed its positive stance on Abbott Laboratories (NYSE:ABT), with analyst Joshua Jennings maintaining a Buy rating and a price target of $135.00. According to InvestingPro data, Abbott is currently trading near its Fair Value, with a P/E ratio of 16.38. Jennings expects Abbott Labs to either meet or exceed consensus estimates for its first-quarter earnings, due April 16, which could keep the company on track to achieve its 2025 financial targets.
Jennings highlighted the company's new product rollouts as key growth drivers, specifically mentioning TriClip in the U.S. market and Volt in Europe. These innovations are anticipated to bolster Abbott Labs' core business segments. With an impressive financial health score of "GREAT" on InvestingPro, and revenue growth of 4.59% in the last twelve months, Abbott appears well-positioned to weather potential headwinds from broader economic factors and ongoing litigation related to necrotizing enterocolitis (NEC).
Abbott Labs has demonstrated strong growth in its Medical (TASE:BLWV) Devices division, as evidenced by its impressive fourth-quarter results. Additionally, the company has reported robust revenue increases across its other divisions, including Diagnostics, which grew by 6.1% in the fourth quarter, Nutrition, which saw a 7.1% rise, and Established Pharmaceuticals Division (EPD), which experienced an 8.5% growth.
These positive trends across Abbott Labs' diverse business units have contributed to TD Cowen's bullish outlook for the company's prospects in the 2025-26 period. The analyst's commentary underscores the belief that Abbott Labs is well-positioned to sustain its growth trajectory and deliver on its long-term financial guidance.
In other recent news, Abbott Laboratories has received CE Mark approval for its Volt PFA System, allowing the company to begin commercial cases in the European Union. This regulatory milestone enables Abbott to expand its presence in the European market with plans to broaden availability later this year. The Volt PFA System has shown promising results, achieving a 99.1% success rate in pulmonary vein isolation with fewer energy applications than other systems. Analysts from Oppenheimer and BTIG have maintained their positive outlooks on Abbott, with price targets set at $134 and $140, respectively, following this development. Oppenheimer noted the significance of the early CE Mark approval, which exceeded initial timeline projections. Piper Sandler also expressed confidence in Abbott, maintaining an Overweight rating and highlighting the company's potential for increased market share in the structural heart space. Survey results suggested Abbott could achieve a higher market share than previously estimated, indicating potential underappreciation of its structural heart business. These developments underscore Abbott's strategic advancements and potential for growth in its medical technology sector.
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