UBS reiterates Buy rating on Abbott Labs stock amid sustainable MedTech growth

Published 16/10/2025, 15:18
UBS reiterates Buy rating on Abbott Labs stock amid sustainable MedTech growth

Investing.com - UBS maintained its Buy rating and $154.00 price target on Abbott Laboratories (NYSE:ABT) following the company’s third-quarter 2025 earnings report. According to InvestingPro data, Abbott currently trades at $129.72 with a P/E ratio of 16.74, suggesting potential upside based on the analyst target.

The investment firm highlighted the sustainability of double-digit MedTech sales growth as the most significant takeaway from Abbott’s quarterly results, expecting this trend to continue. UBS views the recent share price pressure as a buying opportunity, particularly given potential upside to 2026 analyst estimates that Abbott management "blessed" during the earnings call. InvestingPro analysis shows Abbott maintains a "GREAT" financial health score of 3.33, with revenue growing at 6.37% over the last twelve months.

UBS acknowledged some weakness outside the MedTech segment that disappointed investors who had positioned for a strong beat-and-raise quarter. The firm noted that diagnostics comparisons will ease entering 2026, while China exposure becomes increasingly immaterial to growth.

In the Nutrition segment, UBS expects U.S. Pediatric Nutrition to return to low-single-digit market growth following a lost WIC contract, which the firm believes will be more than offset by two new WIC contracts taking effect in the first half of 2026.

UBS projects that stability in non-MedTech businesses combined with sustainable double-digit MedTech growth should position Abbott for consistent sales and earnings beats in 2026 and beyond. InvestingPro data reveals Abbott has raised its dividend for 12 consecutive years, currently offering a 1.82% yield, highlighting its commitment to shareholder returns.

In other recent news, Abbott Laboratories reported its third-quarter earnings, with an earnings per share (EPS) of $1.30, aligning with analysts’ expectations. However, the company slightly missed revenue forecasts, reporting $11.37 billion compared to the anticipated $11.4 billion. Despite this, Abbott’s Medical Devices portfolio showed significant growth, with Diabetes Care up 19% and Electrophysiology up 16%. Benchmark reiterated its Buy rating, maintaining a $145 price target, highlighting strong device sales as a key factor. RBC Capital kept an Outperform rating with a $147 price target, despite noting a topline miss attributed to transient factors. Wells Fargo raised its price target to $146, emphasizing strength in Abbott’s Medtech segment. Similarly, Jefferies increased its price target to $146, citing growth in the medical device segment, which constitutes about half of Abbott’s sales. These developments reflect a mixed yet optimistic outlook from analysts on Abbott’s performance and future prospects.

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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