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Investing.com -- Benchmark started Abbott Laboratories with a Buy rating and a $145 price target, calling the diversified healthcare company a steady performer in a volatile global environment.
Abbott’s wide-ranging portfolio, spanning diabetes care, cardiovascular devices, nutritionals, diagnostics, and established pharmaceuticals, gives it a strong foundation for sustainable mid-single-digit sales growth and double-digit adjusted earnings.
Abbott has an impressive 407 consecutive dividend payments.
Benchmark said Abbott’s business model stands out for not being dependent on a single therapy, product, or market.
Its largest division, Diabetes Care, continues to be the key growth driver, led by the Freestyle Libre continuous glucose monitoring (CGM) systems. Growth in this segment should remain strong, helped by competitor setbacks and minimal impact from proposed changes in Medicare’s competitive bidding process.
The Cardiovascular unit, which includes structural heart, electrophysiology, and heart failure products, adds further balance to growth.
Meanwhile, Nutritionals, with brands like Ensure, Glucerna, and Protality, is benefiting from rising demand for high-protein products amid the growing use of GLP-1 weight-loss drugs, which have boosted focus on maintaining muscle mass.
While Abbott’s Diagnostics business is still recovering from post-pandemic declines in COVID-19 testing and value-based procurement pressures in China, Benchmark expects the segment to reaccelerate in 2026 with the rollout of a new molecular nucleic acid testing platform for blood screening.
Abbott’s Established Pharmaceuticals arm also offers upside, with plans to launch large-molecule biosimilars in emerging markets starting in 2026.
Benchmark highlighted Abbott’s ability to weather potential trade disruptions, noting its $500 million investment in new U.S. facilities and expansions next year. That move, analysts said, positions the company well for any future tariff negotiations.
Strong cash generation underpins Abbott’s growth strategy. Benchmark expects free cash flow to rise from $6.4 billion in 2024 to $7.4 billion in 2025, funding R&D, acquisitions, buybacks, and its long-standing dividend.
“Abbott provides a compelling long-term investment opportunity with its diversified business model, which does not rely on a single therapy, product technology, or geography,” the analysts said.