Freedom Capital Markets adjusted its stance on Abbott Laboratories (ABT), moving its recommendation from Hold to Buy while trimming the price objective to $120 from $130. At the time of the revision, the stock was quoted at $105.40, marginally above its 52-week low of $105.27. Analysis from InvestingPro, referenced by the firm, suggests the shares are trading below what that service estimates as Fair Value.
The upgrade comes despite Abbott’s fourth-quarter 2025 results missing expectations, a shortfall driven principally by weakness in the Nutrition segment. Company management has indicated that Nutrition headwinds are expected to persist through the first half of the year.
Freedom Capital Markets pointed to the ongoing resilience of Abbott’s Medical Devices and Established Pharma (EPD) businesses as the primary revenue supports that have helped offset softer performance elsewhere in the company. At the same time, the research house lowered its price target after reworking valuation multiples to reflect the current underperformance in Diagnostics and Nutrition.
Looking ahead, Abbott has issued guidance for 2026 calling for 6.5% to 7.5% organic revenue growth. Freedom Capital Markets characterized that outlook as conservative, citing the anticipated integration of Exact Sciences, which Abbott expects to complete in the second quarter. The prospect of that integration and the substantial correction in Abbott’s share price factored into the decision to elevate the recommendation despite the reduced price target.
Abbott’s reported fourth-quarter 2025 performance showed organic sales growth of 3.8% when excluding COVID-related revenue, a result that prompted a number of investment firms to revisit their valuations and ratings for the company.
Among recent analyst moves: UBS reaffirmed a Buy rating and kept a $158 price target while noting reservations about Abbott’s 2026 organic-sales guidance. Bernstein SocGen cut its target to $125, pointing to what it described as a "surprise Q4 sales miss" and a slowdown in the continuous glucose monitoring business. TD Cowen trimmed its target to $137, citing the revenue shortfall and more cautious 2026 sales guidance. Benchmark maintained a Buy stance with a $145 target despite acknowledging weaknesses in the Nutrition Products segment. RBC Capital reset its target to $135 and continued to carry an Outperform rating after revenue expectations came up short across all segments.
Taken together, these analyst updates illustrate a cautious industry response to Abbott’s recent quarter: firms are recalibrating price targets and reasserting differing convictions on the company’s near-term trajectory while recognizing potential upside from the Exact Sciences integration and the marked drop in the stock price.
Key points
- Freedom Capital Markets upgraded Abbott from Hold to Buy and lowered its price target to $120 from $130.
- Abbott’s Q4 2025 results missed expectations, driven by Nutrition segment weakness; management expects this to continue through H1.
- Analysts adjusted targets across the board, reflecting concern about near-term growth but divergent views on longer-term prospects tied to the Exact Sciences integration.
Risks and uncertainties
- Persisting weakness in the Nutrition segment could pressure organic revenue and margins in consumer-facing products - impacting the consumer staples and food/beverage exposure within Abbott’s portfolio.
- Softness in Diagnostics and a slowdown in the continuous glucose monitoring business introduce uncertainty for medical device and diagnostics revenue streams - affecting healthcare equipment and diagnostics markets.
- Revenue expectations fell short across segments in the reported quarter, prompting analyst recalibrations and signaling broader earnings risk for investors focused on healthcare and medical technology sectors.