Abbott Laboratories (ABT) Stock Forecast & Price Target

Abbott Laboratories
Bear Case

Investors should be bearish about investing in Abbott Laboratories for these reasons:

• The $385 million settlement payment related to the infant formula recall represents a significant one-time financial charge that will impact the company's bottom line, while the reputational risk associated with the 2022 recall and plant closure continues to draw negative attention to the company's product safety record.
• Abbott Laboratories is trading at a P/E ratio of 33.01, which is relatively high compared to many other healthcare companies, suggesting that the stock may be overvalued relative to its current earnings, particularly given the recent downward revision of its full-year 2026 EPS guidance to a range of $5.450-$5.60.
• The stock has experienced a significant decline from its 52-week high of $137.49 to its current price of $101.99, indicating a bearish trend over the past year that may reflect broader market concerns about the healthcare sector or specific challenges facing the company's core business units.
• Short interest in Abbott Laboratories has increased to 22,129,750 shares as of August 31, 2026, representing a month-to-month change of 8.61%, which suggests that a growing number of investors are betting against the stock, potentially signaling concerns about future performance or valuation.
• Recent insider trading activity shows a net selling trend, with executives such as John A Jr. Mccoy and Mary K Moreland selling shares in early 2026, which may indicate that company insiders are less confident in the stock's near-term prospects compared to the broader market sentiment.