Market Predictions on Abbott Laboratories Shares: Bullish or Bearish?
Revamped and Rewritten:
Embrace the dynamism of Abbott Laboratories (ABT), a colossal healthcare powerhouse with a staggering market cap of $233.1 billion. This global titan specializes in the creation, development, manufacture, and sale of an assortment of medical products, encompassing diagnostics, medical devices, nutrition, and branded generic pharmaceuticals. With a dominant presence in emerging markets and a legacy of strategic acquisitions and divestitures, Abbott is committed to revolutionizing healthcare globally.
Over the past 52 weeks, ABT shares have outperformed the broader market, surging a whopping 28.4%, as opposed to the S&P 500 Index's modest 8.9% surge. On a year-to-date basis, ABT has witnessed an impressive 18.8% jump compared to SPX's meager 3.5% growth.
Beyond the headlines, ABT has outshone the Health Care Select Sector SPDR Fund's 6.2% decline over the same period.
One might wonder about the recent Q1 2025 report that revealed weaker-than-expected revenue of $10.4 billion. However, investors weren't deterred; ABT shares spiked 2.8% on Apr. 16 following an EPS beat of $1.09, up 11.2% YoY. Organic sales growth, especially in the Medical Devices segment (which saw a significant 12.6% surge), left investors buzzing with excitement, thanks to standout products such as FreeStyle Libre and structural heart devices. Abbott reassured investors with its continued faith in its full-year 2025 EPS guidance of $5.05 - $5.25.
So, what's the forecast for the upcoming year? Analysts predict a 10.5% YoY growth in ABT's EPS, reaching $5.16 by the end of December 2025. This growth prediction is buoyed by Abbott's impressive earnings surprise history, in which it has outperformed consensus estimates in the last four quarters.
As of now, 25 analysts have covered the stock, with 17 burying the hatchet and giving a resounding "Strong Buy" recommendation. The remaining six analysts are playing it cool with a "Hold" stance, while only two are showing restrained optimism with a "Moderate Buy" recommendation.
Stifel recently reaffirmed its bullish stance, maintaining a "Buy" rating on Abbott Laboratories while adjusting the price target to $135. The resilience demonstrated by ABT amidst macroeconomic challenges, COVID testing obstacles, and an exceptional Q1 2025 performance has inspired this continued confidence from the financial analysis powerhouse.
As of today, ABT is trading at a shade below the mean price target of $143.14. The Street-high price target of $159 points to a potentially juicy upside of 18.3% from current levels.
Disclosure: As of the date of publication, this article's author, Sohini Mondal, holds no positions in any of the securities mentioned in this article. All information and data in this article is intended for informational purposes only. For further insights, please refer to our website Disclosure Policy here.
- Sohini Mondal, the author, has no positions in Abbott Laboratories (ABT), a company specializing in pharmaceuticals, diagnostics, medical devices, nutrition, and branded generics.
- Despite weaker-than-expected revenue in Q1 2025, ABT's shares spiked following an EPS beat, indicating a strong performance in the health-and-wellness and finance sectors.
- According to analyst predictions, ABT's EPS is expected to grow by 10.5% YoY, reaching $5.16 by the end of December 2025, driven by its impressive earnings surprise history.
- Majority of the analysts (17 out of 25) covering ABT have given a "Strong Buy" recommendation, reflecting a guaranteed optimism in the pharmaceuticals business of this healthcare powerhouse.
