BUZZ-Broker’s View: Abbott’s nutrition business spin-off will drive growth

October 22 - ** Abbott Laboratories (ABT.N) lowered its expected 2026 sales (link) growth on Wednesday and announced plans to spin off its nutrition business into a publicly listed company, as the firm faces costly lawsuits related to its infant formula products.

** The average rating from 29 analysts on Abbott shares is “Buy”; the median target price is $120 — data compiled by LSEG.

Major spin-off

** Leerink Partners (rating: “Market Perform”, target price: $106) said the planned nutrition business spin-off will create a faster-growing, higher-margin Abbott focused on medical devices, diagnostics, and mature pharmaceuticals.

** RBC Capital Markets (“Outperform”, target price: $125) said new product launches, favorable year-over-year data, and the nutrition business spin-off are expected to boost Abbott's growth and optimize its financial profile in 2027.

** Piper Sandler (rating: “Overweight”, target price: $118) said Abbott intends to divest its nutrition business by the end of 2027, and once completed, this move should accelerate growth and improve margins.

** Morningstar (fair value: $103) commented: “We believe that with the nutrition business — a segment that has long seemed out of place within Abbott's portfolio — removed, Abbott's remaining business will be more focused.”

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