Benchmark has sustained its Buy designation on Abbott Laboratories (NYSE:ABT), alongside a price target set at $145.00. This valuation implies a potential appreciation of approximately 33% from Abbott's prevailing share price, which stands at $108.61 as per InvestingPro data. Notably, the stock has experienced a decline of 10.8% over the preceding week.
The company's latest quarterly disclosure revealed results that fell short of robust expectations. The principal detractor in performance was Abbott's Nutrition Products division, which Benchmark identified as a significant weakness. Despite these obstacles, Abbott managed to record a year-over-year revenue increase of 5.67%, culminating in total revenues of $44.33 billion over the trailing twelve months.
Leadership at Abbott expressed optimism about repositioning its Nutrition segment for growth in the latter half of 2026. This outlook is bolstered by the acquisition of two Women, Infants, and Children (WIC) program contracts slated to commence in the early quarters of 2026. Additionally, the company plans to introduce a variety of new products and aims to finalize the acquisition of Exact Sciences during the second quarter of 2026.
Benchmark underscored Abbott's resilience in the face of near-term headwinds, noting that short-term pressures may weigh on share price until growth initiatives take hold in the upcoming periods.
Further illuminating Abbott's financial state, the fourth-quarter 2025 earnings report highlighted a revenue shortfall across all business segments. Revenues tallied $11.46 billion, reflecting organic year-over-year growth of 3.0%. However, this figure failed to meet Oppenheimer's and consensus forecasts, which hovered around $11.8 billion. Moreover, Abbott's GAAP earnings per share stood at $1.01, falling below analysts' projections ranging from $1.16 to $1.22.
Industry observers such as Piper Sandler attributed the revenue shortfall mainly to the Nutrition business struggles. In response to the quarterly results, multiple financial institutions adjusted their price targets downward while retaining positive outlooks. RBC Capital and Piper Sandler both reduced targets to $135, citing similar reservations. Oppenheimer and Raymond James reevaluated their targets to $132 and $130 respectively, while Wells Fargo set its target at $122. All these entities continue to endorse the stock with favorable ratings despite the tempered projections.