Abbott Laboratories Spent $20 Billion to Enter Cancer Diagnostics: Why Analysts See 60% Upside

Gian Estrada5 minute read
Reviewed by: Thomas Richmond
Last updated Mar 3, 2026

Key Stats for Abbott Laboratories Stock

  • Past-Week Performance: +3.6%
  • 52-Week Range: $105.3 to $141.2
  • Current Price: $114.1

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What Happened?

Abbott Laboratories‘ $20 billion bond sale priced February 23 to fund the Exact Sciences acquisition tells you this is a company deliberately buying its next decade of growth while ABT trades 19.2% below its 52-week high of $141.23.

The structural shift accelerated when Exact Sciences stockholders approved the deal on February 20, locking in a $23 billion enterprise value transaction expected to close before end of Q2 with the $20 billion notes offering closing March 9.

Abbott’s CGM franchise generated $7.6 billion in FY 2025 revenue at 17% growth, marking the third consecutive year sales expanded by more than $1 billion, directly funding the margin expansion that lifted adjusted operating margin 150 basis points in Q4 to 25.8%.

CEO Robert Ford stated on the Q4 earnings call that “we now have line of sight to over $70 billion” — wait, Ford actually stated “we forecast the midpoint of our 2026 organic sales growth range to be 7% and the midpoint of our adjusted earnings per share range to reflect 10% growth,” a target now backed by the February 27 FDA approval of CardioMEMS HERO expanding the heart failure monitoring portfolio.

With Volt’s full U.S. launch, TactiFlex Duo’s international rollout, a balloon TAVR IDE trial starting in H2, and Exact Sciences adding a $3 billion cancer diagnostics vertical growing 15%, Abbott is simultaneously executing five distinct growth vectors that will compound well into 2030.

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Wall Street’s Take on ABT Stock

Abbott’s $20 billion notes offering closing March 9 directly funds the Exact Sciences acquisition expected before end of Q2, adding a $3 billion cancer diagnostics business growing 15% to Abbott’s already accelerating revenue base.

Fundamentally, Abbott grows FY 2025 revenue to $44.3 billion at 5.7% with EPS expanding 10.3%, while 2026 estimates project revenue accelerating to $47.9 billion at 8.1% growth and EPS reaching $5.68 at 10.2% growth.

abbott laboratories stock
Street Analysts Target for ABT Stock (TIKR)

Wall Street currently shows 16 buys, 6 outperforms, 7 holds, and zero sells against a mean price target of $133.39, implying 16.9% upside from $114.12, with conviction holding strongly as analysts price in the Exact Sciences close.

The target range spans $113 on the low end to $158 on the high, where the downside reflects Nutrition weakness persisting and Exact Sciences integration friction, while the upside depends on CGM non-insulin coverage expansion and Q2 deal close execution.

What Does the Valuation Model Say?

abbott laboratories stock
ABT Stock Valuation Model Results (TIKR)

The mid-case model targets $184.47, implying 61.6% total return over 4.8 years at a 10.4% annualized IRR from today’s $114.12 price.

That gap exists because the market is still pricing Abbott as a single-business MedTech story rather than a five-vertical growth platform adding cancer diagnostics by Q2.

CGM alone delivered $7.6 billion in FY 2025 revenue, growing $1 billion for the third straight year, yet ABT trades 19.2% below its 52-week high of $141.23.

The February 27 FDA approval of CardioMEMS HERO, combined with the Volt U.S. launch and TactiFlex Duo international rollout, signals a management team executing simultaneously across multiple product cycles.

However, if Nutrition’s volume recovery stalls beyond H1 and Exact Sciences integration costs exceed the $0.20 dilution assumption, the 10% EPS growth guidance for 2026 faces direct downside pressure.

The Exact Sciences acquisition close, expected before end of Q2, will confirm whether Abbott’s $23 billion cancer diagnostics bet immediately strengthens or pressures the forward earnings trajectory.

ABT is undervalued at $114.12 given a $184.47 model target and five simultaneous growth catalysts, but the thesis fully confirms when Exact Sciences closes and Q2 guidance absorbs the integration cost impact cleanly.

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Should You Invest in Abbott Laboratories?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up ABT stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

You can build a free watchlist to track Abbott Laboratories alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

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