Abbott Laboratories (NYSE:ABT) received an upgrade from Jefferies, which raised its rating to Buy from Hold, stating that the recent post-earnings decline in the stock was “too punitive” and not reflective of the company’s long-term prospects.
Shares of Abbott fell over 8% after the healthcare giant released second-quarter results that were largely in line with analyst expectations. The company reported $11.1 billion in sales and adjusted EPS of $1.26, slightly above consensus estimates.
However, Abbott revised its full-year organic sales growth forecast down to 7.5–8%, from the previous 7.5–8.5% range. The adjustment was attributed to continued softness in COVID-19 testing revenues and pricing pressure from China’s volume-based procurement program.
Jefferies views these headwinds as short-term in nature and expects a recovery in 2026 as the company cycles through current challenges and launches new products. The investment firm also noted improving foreign exchange trends and less-than-expected tariff headwinds.
Looking ahead, Jefferies highlighted Abbott’s growth pipeline, including its Libre continuous glucose monitor, an expanding electrophysiology portfolio, and as many as 10 product launches that could support a turnaround.
As part of the upgrade, Jefferies raised its 2026 earnings forecast and increased its price target to $145 from $143, assigning a 25x multiple on projected 2026 earnings. It views the current valuation—around 21x 2026 EPS estimates—as attractive for a company with diversified growth opportunities despite a slight reduction to 2025 guidance.
Abbott Laboratories stock price
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