Abbott Labs (ABT) Stock Forecast & Price Target

Abbott Laboratories is a diversified healthcare company with a strong presence in cardiovascular and diabetes devices, adult and pediatric nutritionals, diagnostic equipment and testing kits, and branded generic drugs. With a significant portion of their sales coming from outside the United States, Abbott has shown strong growth in their EP and Nutritionals segments, and the recent FDA approval and launch of their TactiFlex Duo catheter positions them well for future market share gains. With a solid pipeline of new products and continued efforts to sustain strong EPS growth, Abbott is well positioned for future growth and deserves a premium multiple compared to their competitors. Risks to their outlook include potential multiple contraction, competition, healthcare policy changes, and regulatory challenges. However, overall Q2 results were in line with expectations and Abbott reaffirmed their guidance for FY26, leading to a positive outlook for the company's future performance.

Abbott Laboratories is expected to see growth acceleration in the second half of 2026 with the launch of Volt 2.0 and continued international expansion of TactiFlex Duo, however, there is uncertainty around the commercialization timelines for TactiFlex Duo in the US. While the diabetes segment continues to see growth, Abbott's success in the market is contingent on reimbursement expansion and product debuts in addition to increased international expansion. Additionally, Abbott faces increasing competitive intensity in the US mitral space and is making changes to its commercial team to address this. Management has expressed confidence in returning to mid- to high-single digit growth in their Structural Heart segment and has seen growth in other areas, such as Rhythm Management and Heart Failure, but there are still concerns around the pricing reset strategy in the Nutrition segment and the uncertainty surrounding the commercialization of their various products in the cancer diagnostics segment.