BTIG cuts Abbott Labs stock price target on sales guide reduction

Abbott Laboratories (ABT) plans to spin off its Nutrition division, which generates $8.5B in annual sales, to focus on higher-growth segments like medical devices and diagnostics. The company offers a 2.69% dividend yield with a 80% payout ratio and a GF Value of $135.69, suggesting modest undervaluation. ABT's GF Score is 82/100, reflecting strong financial health. Insiders have sold more shares than bought in the past year, while 23 gurus hold positions, with mixed recent activity.

Abbott (ABT) reported Q3 2026 earnings, announcing plans to spin off its nutrition business into a separate, publicly traded company. The move follows a strategic review, aiming to enhance value and focus for both entities. Abbott's Q3 sales grew 7%, with diagnostics up 6.5% and nutrition up 5%. The new nutrition company will have $8.5B in annual sales and is expected to join the S&P 500. Daniel Salvadori will lead the new company, with Abbott retaining a diversified healthcare portfolio.

Abbott Laboratories (ABT) shares fell 3.56% to $98.80 after Q3 results met EPS estimates and slightly beat revenue forecasts, but full-year sales growth guidance was lowered to 6%. Options flow showed a defensive tilt with 58% puts, including a diagonal put spread of 2,224 contracts. Implied volatility and downside put costs decreased, suggesting the market has priced in the earnings reset.

Nasdaq Composite and Russell 2000 led a three-day market rally, with Nasdaq up 2.14% and Russell 2000 up 2.36% for the week. The Dow and S&P 500 also gained over 1.2%. Several companies reported earnings, including RTX (NYSE: RTX), Abbott (NYSE: ABT), CME Group (Nasdaq: CME), M/I Homes (NYSE: MHO), and Lockheed Martin (NYSE: LMT). RTX reported $25.0B in Q3 sales and raised its full-year outlook. Abbott posted 14.5% sales growth. CME Group saw record Q3 revenue.

Abbott Laboratories (ABT) reported Q3 adjusted EPS of $1.42, with revenue up 14.5% YoY to $13.01B. Q4 EPS guidance met expectations, but full-year 2026 sales growth forecast was lowered to ~6%. The company plans to spin off its Nutrition business by the end of 2027, aiming to focus on higher-growth healthcare sectors. Medical Devices and Diagnostics saw strong growth, while Diabetes Care faced reimbursement challenges.

Abbott Laboratories (ABT) reported Q3 comparable sales up 7% and adjusted EPS of $1.42, in line with guidance. The company expects sales growth to accelerate post-nutrition separation and forecasts Q4 adjusted EPS of $1.62-$1.67. Abbott also provided updates on its medical device pipeline and near-term pressures in electrophysiology and diabetes care.