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On Friday, Berenberg analyst Luisa Hector adjusted the price target for AbbVie (NYSE:ABBV) shares, reducing it to $170.00 from the previous target of $195.00. The $327.88 billion market cap company currently has a consensus Hold rating, with analyst targets ranging from $173 to $250. Hector’s analysis highlighted the significance of Skyrizi, AbbVie’s product, in driving the company’s long-term growth, particularly noting its role in the immunology sector.
In the first quarter results, AbbVie’s immunology sales saw an increase, which balanced out the downgrades in the aesthetics segment. The company maintains strong fundamentals with 5.45% revenue growth and an impressive 71.01% gross profit margin. Hector’s commentary emphasized AbbVie’s commitment to domestic production, with a substantial workforce and a planned investment of over $10 billion in the United States over the next ten years. This investment includes expansions related to obesity treatments.
Hector also pointed out that Skyrizi is manufactured in the United States for the local market. The overall outlook for AbbVie was described as positive, with the company’s emerging oncology pipeline presenting additional growth opportunities. Berenberg forecasts a 7.5% per annum sales growth for AbbVie up to the year 2029, which is higher than the consensus estimate of 6.5% per annum.
Despite the positive growth outlook and the innovative potential in oncology, Hector believes that the current valuation already reflects these prospects. The company offers a solid 3.53% dividend yield and maintains a "GOOD" financial health score according to InvestingPro, which identifies the stock as slightly undervalued. The revised price target of $170 is said to account for recent market movements. Berenberg’s stance remains a Hold rating for AbbVie stock. For deeper insights and 10+ additional ProTips about AbbVie, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, AbbVie has received accelerated approval from the U.S. Food and Drug Administration (FDA) for EMRELIS, a treatment targeting advanced non-squamous non-small cell lung cancer. This approval is based on clinical trial data indicating a notable response rate among patients. Additionally, the FDA has approved a companion diagnostic tool to identify eligible patients for this treatment. In another development, AbbVie has partnered with ADARx Pharmaceuticals to explore siRNA therapies, focusing on diseases in neuroscience, immunology, and oncology. This collaboration could potentially lead to significant financial gains for ADARx, including an upfront payment and future milestone payments.
Citi analysts have downgraded AbbVie’s stock rating from Buy to Neutral, citing concerns about the company’s late-stage pipeline and potential policy risks. Conversely, Guggenheim Securities has increased AbbVie’s stock target to $216, attributing this to strong first-quarter sales of Skyrizi and Rinvoq, and an upward revision of the company’s earnings guidance for 2025. The FDA has also approved RINVOQ for treating giant cell arteritis, marking it as the first oral JAK inhibitor for this condition in the U.S. This approval is backed by clinical trial results demonstrating a significant remission rate among patients.
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