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Abbott Laboratories (NYSE:ABT) was upgraded to Buy from Hold at Jefferies following its Q2 results and revised guidance, as analysts view the market reaction as “overly punitive” and see an attractive entry point amid transitory headwinds.
The company posted $11.1B in revenue, up 7% YoY, exceeding estimates by $80M, and delivered adjusted EPS of $1.26, in line with consensus.
While Q3 EPS guidance of $1.28–$1.32 came in slightly below the $1.33 consensus, analysts at Jefferies view these pressures, namely COVID testing declines and China’s VBP impact on diagnostics, as temporary.
Jefferies expects growth to reaccelerate in 2026 as Abbott laps those headwinds and benefits from new product cycles across electrophysiology, diabetes, and structural heart.
The upgrade reflects confidence in the company’s execution, a strong pipeline, and improving margin outlook, Jefferies analysts added.
Jefferies has set its price target to $145, above the previous target of $143.
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