Abbott Laboratories (ABT) | News Based Sentiment Analysis

• On September 2, 2025, Abbott received FDA clearance for Medtronic’s MiniMed 780G system to integrate with Abbott’s Instinct sensor for type 1 diabetes, and also for use in adults with type 2 diabetes – expanding the reach of Abbott’s diabetes care solutions to a broader patient base. This integration is a significant step in Abbott’s diabetes technology offerings.
• Despite this positive development, Abbott lowered its full-year 2025 revenue growth forecast to 7.5%-8.0% on September 5, 2025, down from a previously higher range, citing challenges in the diagnostics business, particularly due to China's volume-based procurement. This adjustment led to revised adjusted diluted EPS guidance of $5.10-$5.20 for the year.
• Analyst sentiment remained largely positive, with 31 analysts issuing a "Buy" consensus rating as of September 6, 2025, and an average price target of $127.81. Piper Sandler reiterated an "Overweight" rating with a $150.00 price target on September 5, 2025, citing underappreciated growth catalysts in the diabetes business.
• Several firms adjusted their price targets between September 3-6, 2025, reflecting a mixed outlook: Citi lowered its target to $155, Mizuho to $135, Jefferies upgraded to $145, and UBS reiterated $148. William Blair upgraded ABT to "Strong-Buy," while Wells Fargo revised its price target to $142.00 and Morgan Stanley raised theirs to $137.
• Institutional investor activity was mixed throughout September. EP Wealth Advisors increased its stake by 13.9%, acquiring $8.37 million worth of shares on September 6, 2025, signaling confidence. However, other institutions like DnB Asset Management AS and Alyeska Investment Group L.P. reduced their holdings.
• ABT stock experienced minor fluctuations, rising 0.55% on September 3, 2025, with a trading volume of $0.63 billion, but closing down 0.90% on September 2, 2025.

The Investment Story: September was a month of mixed signals for Abbott, with positive regulatory developments in diabetes care offset by a lowered revenue forecast and varied analyst price target revisions. Institutional investor activity also presented a mixed picture, indicating some uncertainty.

What It Means for Investors: While the FDA clearances are encouraging, the reduced revenue guidance suggests near-term headwinds, particularly in the diagnostics segment. The diverse analyst ratings and institutional activity highlight the need for investors to carefully monitor the company’s performance and adapt to evolving market conditions.

Looking Ahead: Investors should closely watch Abbott’s Q3 2025 earnings, with an expected EPS of $1.28–$1.32, and monitor the impact of the MiniMed 780G integration and the upcoming dual-analyte sensor (expected in the first half of 2026) on revenue growth.

The Bottom Line: Abbott remains a fundamentally strong company with promising long-term prospects, but the recent revenue forecast adjustment introduces a degree of caution. Investors should monitor the company’s ability to navigate challenges in the diagnostics business and capitalize on opportunities in its diabetes care segment.