Abbott’s $21 Billion Exact Sciences Acquisition Supports a $179 Price Target

Gian Estrada5 minute read
Reviewed by: David Hanson
Last updated Mar 18, 2026

Key Stats for Abbott Stock

  • Past-Week Performance: -1.4%
  • 52-Week Range: $105.3 to $139.1
  • Current Price: $110.7

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What Happened?

Medical devices and diagnostics giant Abbott Laboratories (ABT), trading at $110.71 near its 52-week low of $105.27, committed $21 billion to acquire Exact Sciences and add a fast-growing cancer diagnostics business while its core CGM franchise surpassed $7.5 billion in annual sales.

Abbott’s Q4 earnings delivered adjusted EPS of $1.50, up 12% year-over-year, with operating margin expanding 150 basis points to 25.8%, even as the Nutrition segment (infant and adult nutritional products) dragged on top-line results from pricing-driven volume loss.

FreeStyle Libre, Abbott’s continuous glucose monitor that tracks blood sugar in real time without fingersticks, generated more than $7.5 billion in 2025 and grew 17% for the year, marking the third consecutive year of more than $1 billion in absolute sales growth.

On March 9, Abbott completed a $20 billion senior notes offering to fund the Exact Sciences deal, and on March 12 published FreeDM2 trial data showing Libre delivered a 0.6% greater HbA1c reduction versus fingerstick monitoring in 303 type 2 diabetes patients on basal insulin.

Robert Ford, Chairman and Chief Executive Officer, stated on the Q4 2025 earnings call that “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,” underpinning a full-year EPS guide of $5.55 to $5.80 even before the Exact Sciences close.

Abbott’s $6.7 billion remaining buyback authorization, a Volt PFA catheter (a next-generation heart rhythm treatment) launching in the U.S. in 2026, a pending coronary IVL device approval in 2027, and a $3 billion-plus Exact Sciences business growing 15% position the company for sustained double-digit EPS growth through the decade at $110.71.

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Wall Street’s Take on ABT Stock

The Exact Sciences acquisition (a cancer screening diagnostics business growing at 15%) closes in Q2, adding a new high-growth revenue vertical to a portfolio already delivering 10.3% normalized EPS growth in 2025.

abbott stock
ABT Stock EPS & Revenue (TIKR)

Abbott’s normalized EPS held its double-digit growth cadence from $4.67 in 2024 to $5.15 in 2025 and is projected to reach $5.68 in 2026, powered by FreeStyle Libre’s $7.5 billion CGM franchise and 50 to 70 basis points of annual operating margin expansion.

Revenue is projected to grow 8.0% to $47.89 billion in 2026 and 7.5% to $51.48 billion in 2027, with EBITDA margins (earnings before interest, taxes, depreciation, and amortization — a measure of core operating profitability) expanding from 26.5% in 2025 to 27.4% in 2027 as Exact Sciences integrates and Nutrition recovers in H2 2026.

abbott stock
Street Analysts Target for ABT Stock (TIKR)

A notably bullish 22 analysts rate ABT a buy or outperform against just 7 holds and zero sells, with a mean price target of $132.64 implying 19.8% upside from $110.71, as consensus prices in the CGM ramp but not yet the non-insulin reimbursement expansion management flagged for H1 2026.

The $113.00 bear target anchors to prolonged Nutrition volume erosion and Exact Sciences integration drag, while the $158.00 bull target prices in CMS coverage expansion for non-insulin type 2 CGM users, a catalyst management confirmed is not baked into 2026 guidance.

What Does the Valuation Model Say?

abbott stock
ABT Stock Valuation Model Results (TIKR)

The TIKR mid-case target of $179.11 implies 61.8% total return through December 2030 at a 10.6% IRR, built on a 7.2% revenue CAGR from CGM penetration, Exact Sciences, and the Volt PFA catheter launch. Net income margins expand from 20.4% to 21.8%, tracking the 50 to 70 basis point annual operating leverage Abbott’s CFO explicitly guided.

ABT trades 20.4% below its 52-week high of $139.06, yet free cash flow (cash generated after capital spending, the clearest measure of balance sheet health) is projected to jump 20.7% from $7.40 billion to $8.93 billion in 2026.

FreeStyle Libre’s third consecutive year of more than $1 billion absolute sales growth, combined with the March 12 FreeDM2 trial showing 0.6% greater HbA1c reduction versus fingerstick monitoring, justifies the TIKR model’s $179.11 target and its 7.2% revenue CAGR assumption.

The primary risk to the TIKR model is a failed Nutrition recovery; if volume does not return in H2 2026 as management guided, the 8.0% revenue growth assumption breaks and the margin expansion path narrows materially.

Watch Q2 2026 results for the first Exact Sciences revenue contribution and the Nutrition segment’s return to positive organic growth, the two numbers that confirm whether the TIKR model’s 7.2% revenue CAGR is tracking on schedule.

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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.

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