On Thursday, April 17, 2025, Oppenheimer analysts raised their financial outlook for Abbott Laboratories (NYSE:ABT), increasing the price target from $134.00 to $140.00 while maintaining an Outperform rating on the stock. This adjustment follows Abbott’s first-quarter revenue report, which revealed earnings that aligned with analyst projections and showcased a solid performance in the Medical Devices sector.
According to InvestingPro data, Abbott maintains a "GREAT" financial health score, demonstrating its stability with an impressive track record of 55 consecutive years of dividend payments. The company is currently valued at $225 billion and has seen its stock rise by 15.8% year-to-date.
Abbott Laboratories reported first-quarter revenues of $10.36 billion, marking a 6.9% organic increase year-over-year. Although this figure slightly missed the expectations set by Oppenheimer and the consensus estimates, which were $10.63 billion and $10.41 billion, respectively, the GAAP earnings per share (EPS) came in at $0.76, matching Oppenheimer’s forecast and closely aligning with the consensus estimate of $0.78.
The company’s consistent performance is reflected in its trailing twelve-month revenue of $42 billion, with a healthy gross profit margin of 55.6%. Abbott's Medical Devices revenue stood out with $4.90 billion, experiencing an organic growth of 12.6%. Noteworthy developments include the EU CE-Mark approval for Abbott’s PFA-VOLT catheter, with U.S. approval anticipated between late 2025 and early 2026. Additionally, a pivotal trial for the company’s Coronary Intravascular Lithotripsy (IVL) has begun, with enrollment expected to be completed in 2026.
As a prominent player in the Healthcare Equipment & Supplies industry, Abbott trades at a price-to-earnings (P/E) ratio of 16.5x, which InvestingPro analysis suggests is attractive relative to its near-term earnings growth potential. Abbott has reiterated its full-year 2025 organic growth forecast, anticipating a 7.5% to 8.5% increase, and has projected an adjusted EPS in the range of $5.05 to $5.25.
For the second quarter, the company has guided an adjusted EPS of $1.23 to $1.27, which aligns with the consensus estimate of $1.25. This outlook is consistent with the company’s track record of steady growth, supported by strong cash flows and moderate debt levels, as highlighted in InvestingPro’s detailed financial health assessment. However, Abbott also cautioned that tariffs are expected to have a few-hundred-million-dollar impact on the second half of 2025.
Oppenheimer’s revised outlook is based on the assumption that non-Medical Technology headwinds will subside, providing easier comparisons in fiscal year 2026. This, in conjunction with anticipated low double-digit growth in top-line revenue and improved EBIT margins, supports the elevated price target.
In other recent news, Abbott Laboratories reported its first-quarter 2025 earnings, exceeding expectations with an adjusted earnings per share (EPS) of $1.09, surpassing the forecast of $1.07. Despite a slight revenue miss, the company maintained its full-year guidance, projecting high single-digit organic sales growth. Abbott’s management also highlighted a gross margin increase of 140 basis points to 57.1%, showcasing improved profitability.
The company reaffirmed its 2025 guidance despite potential tariff impacts, and analysts from BTIG and Evercore ISI raised their price targets to $145 and $140 respectively, citing Abbott’s resilience and diversified business model. Raymond James also increased Abbott’s price target to $142, maintaining an Outperform rating due to the company’s strong growth profile and strategic initiatives.
Abbott’s ongoing efforts to mitigate tariff expenses and leverage its global manufacturing network were emphasized as key strategies for sustaining growth. The management expressed confidence in maintaining financial guidance while continuing to invest in innovation and research, indicating a positive outlook for Abbott Laboratories in the current economic climate.
Based on the one-year price targets offered by 23 analysts, the average target price for Abbott Laboratories is $140.41, with a high estimate of $158.00 and a low estimate of $111.34. This average target implies an upside of 8.25% from the current price of $129.70.
According to the consensus recommendation from 28 brokerage firms, Abbott Laboratories's average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Additionally, based on GuruFocus estimates, the estimated GF Value for Abbott Laboratories in one year is $118.41, suggesting a downside of 8.7% from the current price of $129.70. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at, calculated based on historical multiples the stock has traded at previously, as well as past business growth and future performance estimates.
In summary, Abbott Laboratories continues to showcase a robust financial health profile, with analysts optimistic about the company's future growth potential. The recent adjustments in price targets and positive earnings reports further reflect the confidence in Abbott's strategic direction and market position.
