Source: Danny Green
Analysts Show Growing Confidence in Abbott Laboratories
Abbott Laboratories (NYSE:ABT), a global healthcare company, is enjoying a positive outlook from analysts. The consensus price target for the company has increased to $147, up from $126.59 over the past year. This change in consensus is indicative of a growing optimism for Abbott’s stock performance. The company’s diversified portfolio, which includes Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices, gives it a strong presence in the healthcare sector, reinforcing positive sentiment among analysts.
COVID-19 Pandemic Enhances Abbott’s Reputation for Innovation
Abbott’s advancements in medical devices and diagnostics have been particularly noteworthy during the COVID-19 pandemic. The company’s development of rapid diagnostic tests and other healthcare solutions has been met with considerable praise, boosting confidence in its capacity to innovate and perform robustly within the industry. This confidence is mirrored in the steady consensus price target of $147 over the past month.
Upcoming Earnings Announcement
Abbott is set to announce its second-quarter earnings on July 17, 2025. Analysts and investors alike are keenly anticipating insights into the company’s financial performance and future outlook. Marie Thibault, an analyst from BTIG, has set a price target of $130 for Abbott, indicating a positive outlook for the company’s stock performance. The forthcoming earnings release is expected to offer valuable insights into Abbott’s growth strategies.
Driving Growth with FreeStyle Libre CGMs and EPD Business
Two areas of focus for Abbott are its FreeStyle Libre continuous glucose monitors (CGMs) and its Established Pharmaceuticals Division (EPD) business. These are seen as key drivers for the company’s growth. Abbott’s collaborations have extended its global reach, making its CGMs more accessible to a larger patient base. This expansion is projected to result in a compound annual growth rate (CAGR) of 15% in FreeStyle Libre sales by 2028, further bolstering the positive sentiment among analysts.
Financial Health and Long-Term Investment Appeal
Abbott’s solid financial health is underscored by its impressive balance sheet and a remarkable track record of over 50 consecutive years of dividend increases. This makes it a compelling long-term investment, particularly for income investors. In addition, the company’s acquisition of rights to four more biosimilar products and a double-digit CAGR in target biosimilar emerging markets suggest that the EPD business could stimulate earnings per share (EPS) growth beyond its Medical Devices segment. Analyst Marie Thibault’s price target of $130 reflects confidence in Abbott’s growth prospects.
Conclusion
In conclusion, the increased consensus price target for Abbott Laboratories reflects growing confidence among analysts regarding the company’s future performance. The company’s advancements in medical devices and diagnostics, particularly during the COVID-19 pandemic, have greatly enhanced its reputation for innovation. Additionally, Abbott’s FreeStyle Libre CGMs and EPD business are expected to drive significant growth in the coming years. With its upcoming second-quarter earnings announcement, investors and analysts are eagerly awaiting further insights into the company’s growth strategies and financial performance.