Abbott Laboratories's (NYSE:ABT) MedTech portfolio is growing at a CAGR (compounded annual growing rate) of 11%-13%.
The company's non-MedTech operations are expanding by low-to-mid single-digit percentages, according to Oppenheimer.
Analyst Suraj Kalia initiated coverage of Abbott Laboratories with an Outperform rating and price target of $130.
The Abbott Laboratories Thesis: The company's MedTech portfolio currently contributes around 45% of total sales of about $42 billion, Kalia said in the initiation note.
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Abbott's product pipeline boosts confidence in the company's long-term growth, the analyst stated.
While its various offerings provide "structural advantages for product bundling," the company has also made disciplined MedTech acquisitions, he added.
On the non-MedTech side, Nutrition and Diagnostics sales comps will ease over the next few years, driving revenue growth with margin expansion of 30 to 50 basis points per year in fiscal 2026 and beyond, Kalia further wrote.
Price Action: Shares of Abbott Laboratories had risen by 0.7% to $114.17 at the time of publication on Tuesday.
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