RBC Capital has revised its price target for Abbott Laboratories (NYSE: ABT) downward to $135 from its previous level of $147, while retaining an Outperform rating on the stock. Presently, Abbott shares trade at $108.61, implying an approximate 26% potential gain relative to the new analyst consensus price target.
The decision comes on the heels of Abbott’s fourth-quarter results for 2025, which led to an 8% drop in the stock price during intraday trading. Over the past week, the share value has declined by 10.8%, hovering near its 52-week low of $105.78. The earnings report revealed that the company fell short of revenue expectations across every segment, a consequence of a mix of broader market influences and company-specific issues.
RBC Capital analyst Shagun Singh described these challenges as "transitory" but cautioned they are expected to persist into the first half of 2026. Abbott’s forecast for 2026 anticipates organic revenue growth between 6.5% and 7.5% year-over-year, which is beneath both analyst expectations and the company’s historic outlook for consistent high single-digit expansion.
Notwithstanding these obstacles, Abbott achieved double-digit growth in earnings per share (EPS) during 2025 and aims to sustain similar performance levels throughout 2026. However, the revenue guidance for 2026 is lower than the company’s typical long-term objective of 8% to 10% annual growth. Abbott reported a diluted EPS of $3.72 over the last twelve months and projects $5.71 for fiscal 2026.
Despite expressing disappointment with Abbott’s recent results, RBC Capital retains confidence in the company’s long-term growth trajectory, which underpins the continued Outperform rating. InvestingPro data suggests that Abbott is modestly undervalued at its current price, supported by its robust dividend profile featuring 56 consecutive years of dividend payments and 12 straight years of dividend increases. The current dividend yield stands at 2.32%.
Additional insights from Abbott’s fourth-quarter financials reveal a revenue total of $11.46 billion, marking organic growth of 3.0% year-over-year but falling short of the $11.8 billion consensus estimate. The Nutrition segment significantly contributed to the revenue miss, generating $1.94 billion in sales versus the expected $2.2 billion. In response to these challenges, several firms revised their price targets for Abbott:
- Piper Sandler aligned with RBC’s $135 target
- Oppenheimer set their price target at $132
- Wells Fargo lowered its outlook to $122 citing difficulties in the nutrition business
- Raymond James adjusted its target to $130
- Jefferies lowered its price target to $145 but maintained a Buy rating
These downward revisions underscore persistent difficulties primarily within Abbott’s Nutrition segment, influencing analyst sentiment across the board.