BMO maintains AbbVie stock Outperform rating, $215 target

Published 04/03/2025, 17:04
BMO maintains AbbVie stock Outperform rating, $215 target

Tuesday, BMO Capital Markets reaffirmed their positive stance on AbbVie stock (NYSE:ABBV), maintaining an Outperform rating and a price target of $215.00. With a market capitalization of $374 billion and trading near its 52-week high, AbbVie currently shows an "GOOD" Financial Health score according to InvestingPro analysis, with 5 analysts recently revising their earnings estimates upward. This reiteration comes as AbbVie enters into a licensing agreement with Gubra to acquire a long-acting Amylin analogue, GUB14295, which is currently in phase 1 development.

The deal involves an upfront payment of $350 million by AbbVie, along with potential milestone payments that could reach $1.875 billion, plus royalties on net sales. BMO Capital views the agreement favorably for AbbVie, acknowledging the strategic move to expand its portfolio with promising new treatments.

The analyst from BMO Capital highlighted the industry’s shift in interest towards new therapeutic modalities beyond single agonist GLP1 treatments. This perspective aligns with AbbVie’s latest acquisition, which appears to be a response to the evolving demands in the pharmaceutical landscape.

Under the terms of the agreement, AbbVie will assume responsibility for the development of the Amylin analogue after the deal’s closing. The financial commitment to Gubra signifies AbbVie’s intention to invest in innovative therapies that could offer enhanced benefits over existing treatments.

While BMO Capital expresses optimism about AbbVie’s deal, there is a note of caution regarding the potential implications for Structure Therapeutics. Structure has been actively seeking a BioPharma partner for its GLP1 and amylin assets. The analyst suggests that this new deal may indicate a competitive challenge for Structure, as it could signal a shift in partner interest towards alternative drug modalities.

Abbvie’s stock performance and investor sentiment will likely be influenced by the progress of GUB14295 through its clinical development phases and the potential expansion of AbbVie’s treatment offerings in the metabolic disease space. The company’s strong market position is reinforced by its 12-year track record of consecutive dividend increases and a current dividend yield of 3.1%. InvestingPro analysis indicates the stock is trading near its Fair Value, with analyst targets ranging from $165 to $250 per share.

In other recent news, AbbVie announced a licensing agreement with Gubra, acquiring rights to GUB14295, a long-acting Amylin analogue currently in Phase 1 development. This move involves an upfront payment of $350 million and potential milestones up to $1.875 billion, with royalties on net sales. BMO Capital Markets reiterated an Outperform rating for AbbVie, maintaining a $215 price target, emphasizing the strategic nature of this partnership. Bernstein SocGen Group kept its Market Perform rating with a $203 price target, noting AbbVie’s entry into the obesity treatment market with GUBamy, which could align with patent expirations for Rinvoq and Skyrizi in 2033. BofA Securities raised AbbVie’s price target to $223 from $200, while maintaining a Neutral rating, citing the company’s robust financial prospects and strategic market positioning.

Additionally, N-able reported fourth-quarter earnings that surpassed expectations, with adjusted earnings per share of $0.10 and revenue of $116.5 million, a 7.5% year-over-year increase. However, the company’s guidance for 2025 fell short of analyst estimates, projecting first-quarter revenue between $115-116 million and full-year revenue of $486.5-492.5 million, below the expected $512.2 million. Despite the lower guidance, N-able’s CEO John Pagliuca expressed confidence in the company’s position and future growth potential, emphasizing investments in cyber-resilience and security leadership.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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