Abbott Labs (ABT) Stock Forecast & Price Target

Abbott Laboratories reported strong performance in its Medical Device division, with sales reaching $5.05 billion, up 14% year-over-year, indicating robust market demand, particularly in electrophysiology and the Structural Heart portfolio, which experienced a notable 22.6% organic growth. The company's commitment to growth is further reflected in its expectation for 2025 organic sales growth of 7.5-8.5%, excluding COVID-19 testing-related sales, demonstrating resilience in advancing other product segments such as Core Laboratory Diagnostics and Nutrition. Additionally, Abbott's long-standing commitment to increasing dividends for nearly 50 consecutive years, alongside a payout ratio of 46% and a yield of 1.8%, underscores its stable financial position and shareholder value focus.

Abbott Laboratories faces significant challenges that contribute to a negative outlook on its stock, primarily driven by declining revenues from Covid-19 testing, which fell from $8.4 billion in 2022 to only $1.6 billion in 2023. Additionally, macroeconomic pressures such as inflation and foreign exchange fluctuations are expected to hinder financial performance, with the company projecting these issues to negatively impact results in 2025. Furthermore, Abbott's reliance on international markets, which account for approximately 60% of its sales, coupled with geopolitical risks and potential changes in healthcare legislation, adds additional uncertainty to its growth prospects.