Abbott Laboratories Surpasses Analyst Price Target: What’s Next?
In recent trading, shares of Abbott Laboratories (Symbol: ABT) have risen above the average analyst 12-month target price of $136.09, currently selling at $138.01/share. When a stock reaches its target price, analysts typically face two options: downgrade the stock on valuation or adjust the target price upward. Their decision may also hinge on the company’s underlying business developments that could be driving the stock price higher. If positive changes are evident, it may warrant a revision of the target price.
Analyst Targets and Their Implications
According to Zacks, 22 analysts contribute to the average target price for Abbott Laboratories. However, the average price reflects a range of opinions. For instance, one analyst projects a price of $117.00, while another has set a target as high as $158.00. The standard deviation among these target prices is $8.076, showcasing the variability in analyst forecasts.
The rationale behind examining the average price target lies in the wisdom of crowds concept, where multiple insights converge to form a more comprehensive outlook. With ABT trading above the average target of $136.09/share, investors might consider reassessing the stock. The question now is whether $136.09 is merely a stepping stone towards a higher target or if the valuation has become stretched enough to warrant profit-taking.
Current Analyst Ratings Breakdown
| Recent ABT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 17 | 17 | 16 | 16 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 6 | 6 | 6 | 6 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.56 | 1.56 | 1.58 | 1.58 |
The average rating, detailed in the last row of the table, ranges from 1 to 5, where 1 indicates a Strong Buy and 5 denotes a Strong Sell. This analysis draws on data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on ABT—at no cost—visit the provided link.
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The views and opinions expressed herein reflect those of the author and do not necessarily represent those of Nasdaq, Inc.
