Analysts Trim Targets but See Steady Growth Ahead for Abbott Laboratories
Healthcare giant Abbott Laboratories (NYSE: ABT) remains a top pick among institutional investors, recently named one of the 12 best medical device stocks by hedge fund consensus. However, the company's latest quarterly results have prompted a recalibration of near-term expectations on Wall Street.
On January 23, Wells Fargo analyst Larry Biegelsen maintained an Overweight rating on Abbott but lowered his price target from $146 to $122, suggesting a potential 15% upside from current levels. In his note, Biegelsen pointed to "transitory headwinds" that led Abbott to miss Q4 sales estimates. While management provided 2026 organic sales growth guidance of 6.5% to 7.5%, this figure sits slightly below prior market consensus. The analyst attributed the pressure primarily to challenges in the Nutrition business, which are expected to linger into the first half of the year.
Abbott's diversified portfolio spans diagnostics, medical devices, nutrition, and established pharmaceuticals. (Image: Romaset/Shutterstock.com)
Similarly, Citi analyst Joanne Wuensch reiterated a Buy rating but cut her target from $155 to $140. Wuensch emphasized that improved execution and results will be necessary for the stock to rebuild momentum following its fourth-quarter announcement.
Abbott, a global leader in developing and marketing healthcare products, operates through four core segments: Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products. This diversification has historically provided stability, even when individual units face cyclical pressures.
Market Voices: A Mix of Confidence and Critique
We gathered reactions from investors and industry observers following the analyst updates:
Michael R., Portfolio Manager at a Boston-based fund: "The target cuts are more about resetting to a realistic near-term base than a story breakdown. Abbott's guidance for high-single-digit organic growth by 2026 shows the core engine is intact. The medical device pipeline, particularly in cardiology and diabetes care, is where the real long-term value is being built."
Sarah Chen, Healthcare Analyst at a Midwest research firm: "It's a classic 'good company, tough quarter' scenario. The Nutrition segment's issues are well-known and largely factored in. What matters now is execution on the margin improvement plans management has outlined. The 2026 sales target seems achievable if diagnostics and devices continue their steady performance."
David K., Independent Investor (posted on financial forum): "Enough with the excuses. 'Transitory headwinds' is becoming a permanent motto. They missed estimates, guidance is lukewarm, and now analysts are scrambling to cut targets. This feels like a management team that's lost its edge in communicating a compelling growth narrative. The stock is going nowhere until we see real beats, not just maintained guidance."
Dr. Lisa Wong, Former Hospital Procurement Officer: "From an operational standpoint, Abbott's depth in diagnostics and point-of-care testing remains a massive moat. The near-term noise in infant nutrition doesn't overshadow their entrenched position in hospitals and labs globally. For long-term investors, this is a period of consolidation, not decline."
The broader market context also plays a role. While Abbott's diversified model offers relative safety, some analysts argue that higher-growth opportunities exist elsewhere in the market, particularly in emerging technology-driven healthcare sectors.
Disclosure: This analysis is based on publicly available information and analyst reports. It is for informational purposes only and not investment advice.