Abbott Laboratories' (ABT) reduced full-year revenue outlook reflects temporary headwinds, but its underlying growth trajectory remains solid, RBC Capital analysts said in a Thursday note.
The firm said in a note Thursday that Abbott's modest Q2 results beat was driven by 12.2% growth in its medical devices business, including 18.5% organic growth in diabetes care.
However, guidance was trimmed after the firm reported declines in COVID-19 testing, pricing pressure in China's Core Lab diagnostics, and US funding cuts for HIV testing, RBC said.
Organic sales growth for 2025 is now expected between 6% to 7% compared with previous estimates of 7.5% to 8.5%, the analysts said.
Despite the revised outlook, RBC said Abbott retained its 2025 earnings per share midpoint of $5.15.
RBC maintained its outperform rating on Abbott Laboratories and a $147 price target.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.