Analysts Maintain Buy Ratings but Trim Abbott’s Price Targets to $125–$140
Twenty-two analysts rate Abbott Laboratories a “Moderate Buy,” with 17 buys, two strong buys and three holds, and an average 12-month price target of $140.79. This week Citigroup, Sanford Bernstein, RBC, BTIG and Goldman Sachs cut targets to $125–$140 while keeping buy or outperform ratings.
1. Consensus Rating and Analyst Targets
Abbott Laboratories has received an average recommendation of Moderate Buy from 22 covering analysts, with 17 assigning a Buy rating, two a Strong Buy and three a Hold. The consensus 12-month price target across these reports stands at $140.79, reflecting a range of views: Citigroup lowered its target from $155 to $140 while maintaining a Buy stance; Sanford C. Bernstein trimmed its objective from $154 to $125 and reiterated an Outperform rating; Royal Bank of Canada cut its target from $147 to $135 with an Outperform rating; BTIG Research adjusted its forecast from $145 to $140 and upheld a Buy rating; Goldman Sachs reduced its target from $152 to $140 and retained a Buy recommendation.
2. Q4 Results, Segment Performance and Guidance
In the quarter ended December 31, Abbott reported adjusted earnings per share of $1.50, meeting consensus, on revenue of $11.46 billion, below the $11.80 billion estimate. Total sales rose 4.4% year-over-year (3.0% organically) and excluding COVID-19 testing grew 3.8%. Medical Devices led growth with a 12.3% increase to $5.68 billion; Diabetes Care sales climbed 14.5% to $2.13 billion. Nutrition declined 8.9% to $1.94 billion and Diagnostics fell 2.5% to $2.46 billion as COVID-19 testing demand waned. For Q1, Abbott guided adjusted EPS of $1.12–$1.18 and full-year EPS of $5.55–$5.80, implying mid-single-digit organic sales growth of 6.5–7.5%.
3. Dividend Increase and Financial Metrics
Abbott declared a quarterly dividend of $0.63, up from $0.59, payable February 13 to shareholders of record January 15. On an annualized basis this equates to $2.52 and a yield near 2.3%, with a payout ratio of 67.7%. At quarter-end the company held a debt-to-equity ratio of 0.23, a quick ratio of 1.24 and a current ratio of 1.70. Its beta remains below market at 0.72 and the twelve-month range reflects a low near $105.78 and a high around $141.23.
4. India Regulatory Scrutiny of Phensedyl Supply Chain
Abbott Healthcare’s Phensedyl cough syrup unit is under investigation by Indian authorities for alleged diversion of codeine-based product. Although production was halted in December 2024, regulators found some 22 million bottles (valued at $55 million) distributed in Uttar Pradesh from April 2024 to March 2025, far exceeding medical demand estimates. Enforcement officers recovered 30,000 bottles concealed in rice sacks, prompting a facility inspection on January 14 during which manufacturing and distribution records were obtained. Abbott has not been named as an accused party in the probe.