UBS analysts have reiterated their Buy recommendation on Abbott Laboratories (NYSE:ABT), maintaining a price target of $158.00, following the company's release of fourth-quarter results that did not meet growth projections. Abbott’s shares have declined by 10.8% over the past week and are trading close to a 52-week low of $105.78, currently priced at $108.79. Market data from InvestingPro suggests the stock is trading below its intrinsic fair value, with the Relative Strength Index (RSI) indicating an oversold condition.
Investor caution revolves around Abbott’s 2026 guidance, which anticipates approximately 7% organic sales growth at the midpoint. This forecast contrasts with the 3.8% organic sales growth (exclusive of COVID-19 related revenues) recorded in the fourth quarter of 2025. The slower-than-expected recent performance has fueled uncertainty among market participants.
However, UBS points to promising factors within Abbott’s MedTech segment that could help accelerate organic sales to a robust high-single-digit growth rate in 2026. Among these are the United States launch of Volt devices in the electrophysiology unit and the potential positive impact from an impending clinical trial on left atrial appendage closure, with results anticipated by late March. Overall, the analyst community maintains a positive stance towards Abbott, reflected in an average consensus rating of 1.76 (Buy) and peak price targets reaching $169.
Moreover, UBS underscores the anticipated normalization of continuous glucose monitoring (CGM) as a standard treatment in diabetes within the next three years. The firm identifies Abbott as one of two leading beneficiaries positioned to gain from a substantial expansion—possibly three to four times—in the addressable patient population during that timeframe. This growth, however, hinges on obtaining broader coverage for Type 2 diabetes. InvestingPro further classifies Abbott as a significant entity in the Healthcare Equipment & Supplies sector, with extensive proprietary insights and strategic analysis available for subscribers.
Financially, despite falling short on sales, Abbott has demonstrated stability by reporting earnings per share (EPS) of $1.50, in line with consensus expectations for the quarter, and projecting EPS of $5.55 to $5.80 for 2026. This forecast approximately aligns with market consensus at the midpoint. Additionally, the company’s longstanding commitment to shareholder returns continues, with 56 consecutive years of dividend payments and a current yield of 2.32%.
Recent company announcements revealed revenue shortfalls in every business segment during the fourth quarter, although adjusted EPS targets were met. Analysts, including those from Piper Sandler and Benchmark, have pinpointed weaknesses in the Nutrition Products division as a significant factor behind the disappointing sales. These results prompted various firms to revise their price targets downward: Bernstein SocGen reduced their target to $125, citing unexpected sales declines and CGM business setbacks; TD Cowen cut its target to $137, attributing the revision to cautious 2026 sales forecasts; while RBC Capital and Piper Sandler lowered their targets to $135, with Piper Sandler emphasizing nutritional product challenges. Notwithstanding these revisions, both Benchmark and TD Cowen upheld their Buy ratings, signaling sustained confidence in Abbott's longer-term prospects.
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