Canopy Growth stock tumbles after announcing $200 million share sale plan
Investing.com -- Jefferies upgraded Abbott Laboratories (NYSE:ABT) to Buy from Hold, calling the market reaction to the company’s latest results “too punitive” and arguing that near-term headwinds in diagnostics are likely to ease.
Abbott shares dropped more than 8% following its second-quarter results, which were largely in line with expectations.
The company posted sales of $11.1 billion and adjusted earnings per share of $1.26, narrowly ahead of consensus.
However, management trimmed its full-year organic sales growth outlook to 7.5–8% from 7.5–8.5%, citing ongoing weakness in COVID testing and pressure from China’s volume-based procurement program.
Jefferies said those factors are temporary and pointed to a potential rebound in 2026 as Abbott laps these pressures and benefits from new product launches.
The broker highlighted upcoming contributions from the company’s Libre diabetes device, electrophysiology pipeline, and 10 expected drug launches.
It also noted improving foreign exchange trends and lower-than-expected tariff impacts.
Jefferies raised its 2026 earnings forecast and lifted its price target to $145 from $143, implying a multiple of about 25 times projected earnings.
Despite the slight cut to 2025 guidance, the firm sees room for upside and described the current valuation—about 21 times 2026 earnings estimates—as attractive for a company with multiple growth levers.