Abbott Laboratories' (ABT) diabetes, electrophysiology, and structural heart businesses' growth outlooks are underappreciated by investors, UBS Securities said in a note Wednesday, reiterating the stock as one of its top large-cap picks.

The brokerage said it views these three MedTech business lines as a "trifecta" of 10%-plus compound annual growth segments that support high-single-digit sales growth for the company.

The firm said Abbott's weighted average market growth rate is expected to rise by about 30 basis points to 7.3% from 2025 to 2028, supported by ramping market presence and innovation within those key business lines.

UBS said that while Abbott shares have risen about 18% so far this year, they still trade below high-growth large-cap peers such as Boston Scientific (BSX), Edwards Lifesciences (EW), and Stryker (SYK) despite a "competitive top and bottom-line growth profile."

The firm said it continues to see room for operating leverage, forecasting EBIT margin expansion of about 140 basis points to reach 24.9% by 2027, and sees upside potential as MedTech-driven sales outperform.

"We believe current valuation still looks attractive for one of our highest conviction large-cap calls," UBS said, adding that Abbott remains "one of the last GARP plays left."

The firm maintained its buy rating and $154 price target on the stock.

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