Abbott Laboratories' Q2 Earnings Report Presents Mixed Picture, Leerink Partners Decreases PT to $136, Maintains Hold Rating

Leerink Partners downgraded Abbott Laboratories (ABT) to Hold and decreased the price target to $136 from $143. The company's recent Q2 earnings report presented a mixed picture, with a solid performance in the MedTech segment but challenges in the Diagnostics segment. Abbott Laboratories is a healthcare products company with business segments including Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products.

Title: Leerink Partners Downgrades Abbott Laboratories to Hold; Mixed Q2 Performance

Leerink Partners has downgraded Abbott Laboratories (ABT) to a Hold rating and reduced its price target to $136 from $143. The downgrade follows the company's second-quarter 2025 earnings report, which presented a mixed picture. While the Medical Devices (MedTech) segment showed robust growth, particularly in the Diabetes and Electrophysiology (EP) areas, the Diagnostics segment faced several headwinds.

The Q2 earnings report highlighted a solid performance in the MedTech segment, which includes products like diabetes management devices and EP systems. However, the Diagnostics segment, which includes COVID-19 testing and other diagnostic products, experienced weaker-than-expected sales and disruptions from value-based purchasing (VBP) in China. Additionally, changes in HIV funding further dampened the outlook for this segment.

Despite these challenges, Abbott Laboratories remains a significant player in the healthcare industry, offering a diverse range of products from diagnostic products to medical devices, established pharmaceuticals, and nutritional products. The company's strong performance in the MedTech segment, particularly in diabetes care, provides a positive outlook for future growth.

Analyst Mike Kratky from Leerink Partners cited mixed performance and sector challenges as reasons for the downgrade. He noted that while there is potential for outperformance in certain areas, the overall outlook remains cautious. Mizuho Securities also maintained a Hold rating on the stock with a price target of $135.

References
[1] https://www.abbottinvestor.com/financials/stock-prices
[2] https://finance.yahoo.com/news/rbc-capital-sees-strong-growth-054202287.html
[3] https://simplywall.st/stocks/us/healthcare/nyse-abt/abbott-laboratories/news/did-strong-q2-results-and-raised-guidance-just-shift-abbott
[4] https://www.tipranks.com/news/ratings/abbott-laboratories-hold-rating-amid-mixed-performance-and-sector-challenges-ratings