The stock of Abbott Laboratories (ABT) has been hit with multiple downgrades from Wall Street analysts after the company’s latest financial results.
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Analysts at Benchmark, Oppenheimer (OPY), Piper Sandler (PIPR), and RBC Capital Markets (RY) each lowered their price targets on ABT stock immediately after the company issued its latest earnings print. RBC took its price target down to $130 per share from $135 previously.
Oppenheimer and Piper Sandler each dropped their price targets on Abbott Labs to $115 a share from more than $130 previously. In a note to clients, Oppenheimer said that Abbott faces headwinds in the medical technology and healthcare device sector.
Abbott’s Financial Results
The multiple downgrades come despite Abbott Labs reporting first-quarter financial results that beat Wall Street’s forecasts, albeit it narrowly. The pharmaceutical giant announced earnings per share (EPS) of $1.15, which topped consensus estimates of $1.14. Revenue in the first quarter totaled $11.16 billion compared with expectations of $11 billion.
Abbott’s earnings also got a lift from the company’s newly acquired cancer diagnostics business. Last November, Abbott bought cancer-test maker Exact Sciences for $105 a share in a deal valued at $23 billion. The Exact Sciences acquisition was the largest in Abbott Labs’ history and represents a major push into the cancer diagnostic market.
Is ABT Stock a Buy?
Abbot’s stock has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 17 Buy and three Hold recommendations issued in the last three months. The average ABT price target of $126.59 implies 30% upside from current levels. These ratings could change after the company’s financial results.
