Freedom recommends buying Abbott shares amid recovering valuations

Freedom analysts set a target price for Abbott Laboratories (ABT) shares at $109, implying upside potential of about 16% from current levels. The firm believes the market is overly focused on short-term earnings pressure, underestimating the prospects for accelerating revenue growth in the second half of the year. 

Abbott Laboratories is one of the world’s largest manufacturers of medical equipment and diagnostic devices. In addition, the company produces specialized nutrition products and pharmaceuticals. The key growth driver remains the medical devices segment, where demand stays resilient, and the acquisition of Exact Sciences strengthens the company’s position in oncology diagnostics.

Exact Sciences is a U.S. biotechnology company specializing in the development of diagnostic tests for the early detection of cancer, including the widely used Cologuard test for colorectal cancer screening. 

Freedom expects strong second-quarter revenue driven by product-line expansion. Analysts forecast a return to double-digit growth in the continuous glucose monitoring (CGM) segment, as well as improved performance in electrophysiology due to the broader rollout of the Volt PFA and TactiFlex Duo products.

An additional supporting factor should be the gradual recovery of the nutrition business after price adjustments carried out in late 2025.

According to analysts, the decline in Abbott’s share price appears unjustified and is mainly due to neutral first-quarter results, as well as investor concerns about the impact of tariffs and the situation in the Middle East. 

Freedom also notes that Abbott shares are trading at an attractive valuation: the forward P/E is near decade lows, despite expectations for a recovery to double-digit earnings-per-share growth starting in 2027. In analysts’ view, current prices do not fully reflect the company’s long-term growth potential. 

This is not an individual investment recommendation.