Abbott price target raised to $140 from $139 at BTIG

BTIG analyst Marie Thibault raised the firm’s price target on Abbott (ABT) to $140 from $139 and keeps a Buy rating on the shares. The firm notes that Abbott reported a Q4 total revenue miss, much of which it attributes to greater Fx headwinds and lower-than-expected COVID testing revenue, and adjusted EPS in line with expectations. In BTIG’s view, the main message on the call was the positive 2025 outlook, which called for above-consensus organic sales growth, a return to double digits adjusted EPS growth, and an impressive 150 bps of operating margin expansion. The “Abbott identity,” which the firm has described this as the ability to pull opex levers, will be more apparent this year, as top-tier MedTech sales growth, 80 bps of year-over-year gross margin expansion, and operating spend leverage is expected to deliver adjusted EBIT margin of 23.5%-24.0% in FY25, BTIG adds.