ABT
Abbott Laboratories$114.76
Hold
Target $126.68
Report: Mar 08, 2026Healthcare • Medical - Devices • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$114.76+10.4%
Rec: HoldConviction: High
Entry Target
$97.45
(15% below current)
Fair Value
$126.68
(10% above current)
Stop Loss
$85.63
(25% below current)
Position Size
Half
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$139.06
52 Week Low$100.88
Avg. 3 Month Volume11.21M
Efficiency
LTM Gross Margin56.4%
LTM EBITDA Margin27.2%
LTM EBIT Margin20.2%
LTM Operating Margin18.2%
LTM ROA7.8%
LTM ROE12.8%
LTM ROIC19.6%
LTM ROCE12.9%
Capital Structure
Market Cap (MM)$178.4B
Enterprise Value (MM)$182.4B
Shares Outstanding1.74B
Total Debt (MM)$12.93B
Cash & Equivalents (MM)$8.94B
LTM Net Debt (MM)$3.99B
LTM Net Debt/EBITDA0.3x
Growth
TTM Rev. Growth5.7%
Last 3-Yr Rev. CAGR0.5%
Last 3-Yr EBITDA CAGR-0.2%
Last 3-Yr EPS CAGR-1.8%
Valuation
Street Target Price$137.67
LTM EV/Revenue4.1x
LTM EV/Gross Profit7.3x
LTM EV/EBIT20.4x
LTM EV/EBITDA15.1x
LTM P/E27.3x
LTM EV/FCF24.7x
LTM P/FCF24.1x
LTM P/TB3.1x
LTM P/B3.4x
Dividend Yield2.3%
Payout Ratio64.3%
Executive SummarySituation: Current price is $114.76 versus fair value $126.68 (10.4% expected return), and valuation confidence is stable. Debate: Bull case depends on Closing of the Exact Sciences Acquisition. Bear case centers on Necrotizing Enterocolitis (NEC) Litigation. Conclusion: Recommendation is Hold with Half sizing and Long-Term horizon.
Bull Case
Abbott's Medical Device segment continues to deliver double-digit growth, powered by a 12% increase in CGM sales and a robust pipeline in electrophysiology. The Exact Sciences acquisition creates a new high-margin growth pillar in oncology, while the company's 1.47x cash conversion ratio supports aggressive shareholder returns.
Bear Case
The Nutrition segment remains a drag on overall performance due to consumer price sensitivity and market share losses. Furthermore, the NEC litigation represents a latent multi-billion dollar liability, with a 2024 jury award of $495 million serving as a concerning precedent for upcoming trials in 2026.
Key Catalysts
Near-Term (0-6 months)Impact: High
Closing of the Exact Sciences Acquisition. This acquisition is the primary strategic pivot for 2026, providing Abbott with a leading positio...
Mid-Term (6-18 months)Impact: Moderate
Nutrition Segment Volume Recovery. A return to volume-driven growth in the Nutrition segment would remove a significant overhang on the stoc...
Long-Term (18+ months)Impact: Moderate
Abbott is currently at a critical juncture as it laps the final stages of COVID-related diagnostic declines and embarks on its largest acqui...
Primary Risks
Concern: High
Necrotizing Enterocolitis (NEC) Litigation. The mechanism of risk is a multi-billion dollar legal liability arising from claims that Abbott'...
Concern: Medium
Moat Erosion in Diabetes Care. The risk is that a competitor launches a technologically superior or significantly lower-cost CGM system, per...
Concern: Medium
The stewardship verdict is strong. The board includes high-caliber operators like Daniel Starks, the former CEO of St. Jude Medical, who hol...
Recent Activity
2026-01-22SEC Filing (8-K)
-10.04%Abbott reported fourth-quarter and full-year 2025 results with strong growth
2025-07-17SEC Filing (8-K)
-8.52%Abbott reported second-quarter 2025 results with strong organic growth
2023-04-19SEC Filing (8-K)
+7.82%Abbott reported first-quarter 2023 results with strong underlying base business performance
2022-10-19SEC Filing (8-K)
-6.54%Abbott reported third-quarter 2022 results and raised full-year EPS guidance
Valuation Table
9.8/10Decision Grade
Scenario Range
$86
Bear
$143
Bull
$115