Abbott Cuts EPS Guidance to $5.38–5.58 After $21B Exact Sciences Acquisition
UBS set a $115 price target for Abbott Laboratories despite a 19.2% year-to-date decline, implying around 20% upside. The company cut full-year adjusted EPS guidance to $5.38–5.58 after its $21 billion Exact Sciences acquisition, while Medical Devices and Diabetes Care sales rose 13.2% and 14.2%, respectively.
1. UBS Price Target and Stock Performance
UBS set a $115 price target for Abbott Laboratories following a 19.2% year-to-date stock decline, signaling roughly 20% upside potential based on current valuations.
2. $21B Acquisition and Guidance Cut
Abbott’s $21 billion purchase of Exact Sciences Corp. prompted a revision of full-year adjusted EPS guidance to $5.38–5.58, down from earlier projections.
3. Robust Growth in Medical Devices and Diabetes Care
The Medical Devices division delivered 13.2% sales growth to $5.54 billion, while continuous glucose monitor sales in Diabetes Care jumped 14.2%, highlighting strong product demand.
4. Divergent Analyst Outlooks
Following the pullback, some analysts raised price targets to $121, even as several earnings forecasts were trimmed after Q1 results, reflecting mixed views on the company’s near-term trajectory.