Merck & Co. (MRK) Price Target Cut to $92 by Leerink Partners

Leerink Partners decreased the price target for Abbott Laboratories (ABT) to $136 from $143, maintaining a Hold rating. Analyst Mike Kratky justified the rating due to Abbott Laboratories' mixed Q2 earnings report, with management slashing organic sales growth guidance. However, positive aspects exist in the MedTech segment. Abbott Laboratories discovers, develops, manufactures, and sells healthcare products through its Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products segments.

Abbott Laboratories (ABT) recently reported its second quarter 2025 results, with sales rising to US$11.14 billion and net income increasing to US$1.78 billion. However, the company's outlook for organic sales growth was revised downward, with Leerink Partners decreasing its price target to $136 from $143 and maintaining a Hold rating [4].

The revision by Leerink Partners was primarily driven by Abbott's mixed Q2 earnings report, which saw management slash organic sales growth guidance. Despite this, the company's MedTech segment showed positive aspects, contributing to the overall growth narrative [3].

Abbott Laboratories operates through four segments: Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products. The company's MedTech division reported 12.2% organic growth during the second quarter of 2025, exceeding consensus estimates [3].

However, Abbott's Diagnostics segment continues to face persistent challenges, particularly in China, where volume-based procurement changes have impacted the business. This segment represents approximately 25% of Abbott's overall operations [3].

Leerink Partners' Mike Kratky noted that while the MedTech segment showed strong performance, the diagnostic hardware challenges are temporary, and the company's Medical Devices and Established Pharmaceuticals divisions have demonstrated resilience [4].

Abbott Laboratories' adjusted 2025 revenue growth forecast stands at 7.5%-8.0%, excluding COVID-19 testing-related sales, and the company narrowed its earnings per share guidance to $5.10-$5.20 [3].

RBC Capital, UBS, and other analysts have maintained their positive outlook on Abbott Laboratories, highlighting the company's strong financial health and robust pipeline, such as the VOLT system and dual analyte sensor [2][3].

Despite the recent challenges, Abbott Laboratories' consistent dividend payments for 55 consecutive years and its market capitalization of $217 billion make it a prominent player in the Healthcare Equipment & Supplies industry [3].

References:

[1] https://simplywall.st/stocks/us/healthcare/nyse-abt/abbott-laboratories/news/did-strong-q2-results-and-raised-guidance-just-shift-abbott
[2] https://finance.yahoo.com/news/rbc-capital-sees-strong-growth-054202287.html
[3] https://www.investing.com/news/analyst-ratings/abbott-labs-stock-rating-reiterated-at-buy-by-ubs-despite-guidance-cut-93CH-4144301
[4] https://finance.yahoo.com/news/declining-stock-solid-fundamentals-market-110242392.html