Baird Initiates Coverage of Abbott Laboratories
Baird has initiated coverage of Abbott Laboratories, assigning an Outperform rating and a price target of $121 per share. The brokerage expects Abbott to deliver annual revenue growth of 6% to 8% and low‑double‑digit earnings growth over the coming years. Abbott’s medical‑devices segment, which accounts for roughly 47% of total sales, is projected to expand 8%‑10% annually, driven by strong demand for electrophysiology products, continuous glucose monitoring systems and structural‑heart devices. Specific products highlighted for upside include VOLT, TactiFlex Duo, TriClip, Aveir and Libre Duo, together with expanded reimbursement opportunities.
The firm notes that Abbott’s diversified portfolio across medical devices, diagnostics, nutrition and established pharmaceuticals provides resilience, and that diagnostics‑related challenges in China and softer respiratory‑testing demand are expected to ease. The recent acquisition of Exact Sciences broadens Abbott’s presence in colorectal‑cancer screening and creates long‑term opportunities in multi‑cancer early detection and molecular residual‑disease testing, with contributions expected to become material from 2027 onward.
Baird forecasts adjusted earnings per share of $5.46 for 2026 and $6.05 for 2027. The $121 price target is based on a 20‑times multiple of the 2027 earnings estimate, reflecting the company’s above‑peer growth outlook and strong product pipeline. The brokerage also anticipates accelerating sales in the second half of the year as diabetes, electrophysiology and diagnostics businesses recover and Exact Sciences’ integration progresses.