Abbott Labs (ABT) PT Lowered to $145 at BTIG

BTIG analyst Marie Thibault lowered the price target on Abbott Labs (NYSE: ABT) to $145.00 (from $148.00) while maintaining a Buy rating.

The analyst commented: "ABT shares are down ~8% in Thursday trading despite a top and bottom-line Q2 beat, as volume-based procurement in the China Core Lab business and declines in COVID test sales dragged full-year guidance to the lower end of the prior range. These dynamics represent a projected ~$700M or 750 bps headwind to 2025 sales growth in Diagnostics (over $1B when including HIV testing headwinds). We view this as a one-time dynamic out of ABT's control that may be resolved around year-end and would use this pullback as a buying opportunity. Fundamentals across the rest of the portfolio were healthy, as Core Lab Diagnostics ex-China grew 8% y/y and Medical Devices grew an impressive ~12% y/y org. (15% y/y growth in the U.S.). The 2025 full year guide was revised to 7.5-8% organic sales growth (prior 7.5-8.5%), adj. operating margins of 23.5% (prior 23.5-24.0%), and adj. EPS of $5.10-$5.20 (prior $5.05-$5.25). Management also took the unusual step of informally blessing 2026 Street estimates, noting that the HSD top line and DD bottom line growth assumptions look reasonable. The Medical Device business looks poised to continue its premium growth trajectory as ABT closes portfolio gaps within the EP business with its Volt PFA catheter, continues to outperform in CGM through expanded coverage wins and new product launches, sustains momentum in leadless pacing with Aveir, takes share in TAVR with Navitor through a broader commercial footprint, expands TriClip to new accounts, and potentially accelerates growth in left atrial appendage closure through a market-expanding competitive trial readout early next year. We acknowledge investor disappointment in the guidance revision but remain bullish on ABT's long-term trajectory. We trim our P/E multiple from 25x to 24.5x. After applying this to our 12-24 month adj. EPS forecast, we reduce our PT from $148 to $145. Reiterate Buy."

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