Abbott Laboratories, a leading healthcare company, is experiencing significant growth in its MedTech portfolio, which currently accounts for about 45% of its total revenue of $42 billion. According to Oppenheimer analyst Suraj Kalia, this segment is expanding at a healthy compounded annual growth rate (CAGR) of 11% to 13%. This robust performance has led Kalia to initiate coverage of Abbott Laboratories with an ‘Outperform’ rating and a price target of $130.
Kalia’s optimism stems from Abbott’s strong product pipeline, which he believes will fuel long-term growth. He highlights the company’s strategic acquisitions and the inherent “structural advantages for product bundling” that its diverse offerings provide. These factors collectively paint a picture of a company well-positioned for continued success in the MedTech space.
While the MedTech division is driving impressive growth, Abbott’s non-MedTech operations, which include Nutrition and Diagnostics, are also expanding, albeit at a slower pace. Kalia anticipates that sales growth in these segments will moderate over the next few years, leading to revenue growth accompanied by margin expansion of 30 to 50 basis points annually starting in fiscal 2026.
With its robust MedTech portfolio, strategic acquisitions, and a promising long-term outlook, Abbott Laboratories is attracting significant investor attention. The company’s stock price has risen by 0.7% to $114.17 at the time of this writing, reflecting the market’s confidence in its growth trajectory.
