Abbott Laboratories (ABT) expects growth to accelerate in the second half of 2026, supported by new product launches, recovering Nutrition and Diagnostics businesses and easier year-over-year comparisons, RBC Capital Markets said.
The brokerage said in a Thursday note that the near-term challenges in Diagnostics from Chinese volume-based procurement and internal initiatives in Nutrition are likely to persist in the first half. However, RBC said the issues are temporary.
Abbott guided to 2026 organic revenue growth of 6.5% to 7.5%, which is below RBC and consensus estimates. The company also projected adjusted EPS of $5.55 to $5.80 roughly in line with forecasts.
MedTech grew 10.4% organically in Q4, which was slightly below RBC's estimate. Established Pharmaceuticals rose 7%. These results supported total organic growth of 3.8% but excluding COVID-related sales.
The brokerage said that the expectations have now reset and upside surprises in the second half could come from the US launch of the VOLT system in Electrophysiology. Additional growth could come from Structural Heart, Diabetes and potential M&A in Diagnostics and MedTech.
Management remains committed to delivering double-digit EPS growth and cited confidence in operational execution and long-term demand trends, according to the note.
RBC maintained an outperform rating for Abbott and lowered its price target to $135 from $147.
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