Abbott Laboratories' Established Pharma Unit Undervalued on Biosimilars Potential, UBS Says

12:45 PM EDT, 10/20/2026 (MT Newswires) -- Abbott Laboratories' (ABT) Established Pharmaceuticals Division is a better business than investors recognize, with biosimilars offering upside the market isn't pricing in, UBS said in a note Tuesday. The bank said the base business alone can meet Street expectations of about 7% organic growth, with pricing largely reflecting recovery of local cost inflation and limited volume impact. Adding biosimilars, they see growth approaching 10% in 2028 and 2029, about 300 basis points above consensus, with roughly $400 million in incremental sales by 2029. UBS said biosimilar contributions aren't in consensus and that it's too early to build them into its own forecasts. On the third quarter, UBS expects noise, with the unit's growth of about 15% to 16% versus the Street's roughly 20%, but said that is well anticipated and the exit rate into the fourth quarter and 2027 is what matters. UBS rated the stock buy with a $125 price target. Price: 102.82, Change: -1.25, Percent Change: -1.20