Abbott Labs (ABT) Stock Forecast & Price Target

Abbott Laboratories reported a strong performance in its Medical Device division, achieving sales of $5.05 billion, reflecting a growth of 14% year-over-year, driven by advancements in electrophysiology and structural heart products. The company anticipates organic sales growth of 7.5% to 8.5% for 2025, suggesting robust future performance and resilience despite the absence of COVID-19 testing revenues. Additionally, Abbott's commitment to shareholder returns is evident in its nearly 50 consecutive years of dividend increases, with a current payout ratio of 46% and a yield of 1.8%, highlighting financial stability and investor confidence.

Abbott Laboratories is facing significant challenges due to decreased sales from COVID-19 testing, which plummeted from $8.4 billion in 2022 to $1.6 billion in 2023, impacting overall revenue expectations. Additionally, the company is projected to experience headwinds from foreign currency fluctuations and macroeconomic pressures, including inflation and supply chain issues, which could negatively impact performance in 2025. Furthermore, Abbott's growth prospects may be hindered by competitive pressures, geopolitical risks affecting international expansion, and regulatory hurdles for new product introductions, all contributing to a negative outlook on the stock.