The firm maintained its $48 price target on the stock.
The stock's recent rally has balanced its risks and rewards, Goldman Sachs said in a note.
Given consolidation within the industry, the firm now views more favorable upside elsewhere within its coverage.
Capital allocation is needed for Abbott stock to reach its bullish estimates, as Goldman Sachs no longer sees an upside to consensus earnings estimates.
"To be clear, this is not a negative call on Abbott's business or emerging markets (EM) but rather a shift in our industry view to focus on stocks with more bottoms-up growth drivers (new product cycles) rather than making a top-down call (i.e. strength in EM healthcare spending)," the firm said in a note.
Based in Abbott Park, IL, Abbott is engaged in the discovery, development, manufacture and sale of a range of health care products.
Shares of the company are gaining by 0.02% to $44.20 in mid-morning trading on Friday.
Separately, TheStreet Ratings team rates ABBOTT LABORATORIES as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate ABBOTT LABORATORIES (ABT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, increase in stock price during the past year, impressive record of earnings per share growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.