Investment research firm TD Cowen has decreased its price target for Abbott Laboratories (NYSE:ABT) to $137 from a previous $145, while maintaining a Buy stance on the healthcare company’s stock. Abbott’s shares are currently priced at $108.61, notably below the adjusted average target.
This revision follows Abbott’s release of fourth-quarter financial results, which showed a revenue figure of $11.46 billion, representing a 3.0% increase on an organic basis year-over-year. However, this result fell short of analysts’ consensus expectations of about $11.8 billion. Additionally, the company reported GAAP earnings per share (EPS) of $1.01, which did not meet the anticipated EPS range of $1.16 to $1.22.
TD Cowen attributes Abbott’s share price decline of approximately 10% to these revenue setbacks and more cautious sales guidance for fiscal year 2026. The firm describes the outlook as “tempered,” highlighting that assumptions for recovery are concentrated mainly in the latter half of the year.
Despite these challenges, TD Cowen maintains an optimistic view of Abbott’s future. The firm notes that current shares are trading at roughly 17 times the estimated 2027 earnings per share, a valuation level not seen in a decade. This presents what TD Cowen considers a “near-term opportunity,” particularly as headwinds within Diagnostics and Nutrition sectors are expected to diminish.
Other equity research institutions have also responded to Abbott’s earnings announcement by adjusting their price targets. RBC Capital lowered its target to $135 while keeping an Outperform rating. Piper Sandler cut its target similarly to $135, pointing to struggles within the Nutrition segment. Oppenheimer and Wells Fargo have adjusted their respective targets to $132 and $122, yet both continue to hold positive ratings following the earnings disappointment. Conversely, Benchmark reiterated a Buy rating with an unchanged target of $145, expressing confidence in Abbott’s ongoing potential.
Abbott’s Nutrition Products segment, in particular, has been a significant drag on the company’s recent performance, contributing to the earnings shortfall and prompting analyst caution. With progress expected next year, market participants will be watching closely for signs that operational improvements materialize in the second half of 2026.