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Investing.com - UBS maintained its Buy rating and $154.00 price target on Abbott Laboratories (NYSE:ABT) stock on Wednesday, highlighting the company’s underappreciated growth potential. According to InvestingPro data, Abbott maintains a "GREAT" financial health score and trades near its 52-week high of $141.23.
The investment firm noted that despite Abbott shares rising approximately 18% year-to-date (actual YTD return of 19.3% per InvestingPro), the stock still trades below high-growth large-cap peers despite having a competitive top and bottom-line growth profile. With a market capitalization of $231.5 billion and a P/E ratio of 16.8x, Abbott demonstrates strong fundamentals.
UBS identified three key business segments—Diabetes, Electrophysiology (EP), and Structural Heart (SH)—as driving forces behind its projected high-single-digit growth for Abbott, supporting the firm’s above-consensus estimates of 1%, 1.4%, and 2.6% for 2025, 2026, and 2027, respectively.
The firm’s analysis suggests that Abbott shares are currently pricing in sales growth of approximately 6.4% from 2025-2029, compared to UBS’s more optimistic projection of a 7.2% compound annual growth rate.
UBS described Abbott as "one of our highest conviction Large-Cap calls" and maintained that the current valuation "still looks attractive" despite the year-to-date share price appreciation.
In other recent news, Abbott Laboratories reported quarterly sales of $11.14 billion, marking a 7.5% year-over-year organic growth when excluding Covid-related revenue. The company’s earnings per share came in at $1.26, slightly surpassing consensus estimates by one cent. Citi adjusted its price target for Abbott to $155.00 from $157.00, maintaining a Buy rating due to challenges in the China diagnostics sector. UBS reiterated its Buy rating with a $148.00 price target, despite Abbott lowering its fiscal year 2025 sales guidance. The firm remains optimistic, citing the MedTech division’s 12.2% organic growth in the second quarter, which exceeded the consensus estimate of 11.2%. Piper Sandler also maintained an Overweight rating, with a $150.00 price target, highlighting growth potential in Abbott’s diabetes business and upcoming innovations. Additionally, Abbott declared a quarterly dividend of 59 cents per share, marking its 407th consecutive payout. UBS continues to see Abbott as a top pick in the Medical Supplies and Devices sector, with a $154.00 price target, emphasizing the company’s growth trajectory in its MedTech business.
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