BMO retains AbbVie stock Outperform rating, $215 target

Published 28/04/2025, 12:28
BMO retains AbbVie stock Outperform rating, $215 target

On Monday, BMO Capital Markets maintained their positive stance on AbbVie stock (NYSE:ABBV), reiterating an Outperform rating and a price target of $215.00. The pharmaceutical giant, with a market capitalization of $329 billion, has shown impressive momentum with a 9.3% return in the past week. According to InvestingPro analysis, the stock currently trades below its Fair Value, suggesting potential upside opportunity. The firm’s analysis highlighted the pharmaceutical company’s robust performance, which exceeded consensus estimates, with a 3% increase in both top-line revenue and bottom-line earnings.

Abbvie’s recent financial results showcased the strong commercial execution of the company, with particular emphasis on the growth of Skyrizi and Rinvoq. These two drugs surpassed expectations, with sales beating consensus projections by 7% and 8% respectively. This growth has been significant enough to balance the sharper than anticipated decline in revenue from Humira, which saw a 15% drop in the first quarter compared to consensus estimates.

The company’s neuroscience portfolio received a boost from Vyalev, which demonstrated an impressive initial growth rate of 80%, surpassing forecasts. BMO Capital noted that this performance provides additional upside to AbbVie’s portfolio in this therapeutic area.

Furthermore, the analysis indicated that foreign exchange benefits could play a substantial role in the company’s reported strength. The firm also found it encouraging that AbbVie raised its earnings per share (EPS) guidance despite increased investment in in-process research and development (IPR&D), signaling confidence in its financial outlook.

In other recent news, AbbVie reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an adjusted earnings per share (EPS) of $2.46, compared to the forecasted $2.39. The company also reported revenues of $13.3 billion, exceeding forecasts by nearly $550 million. AbbVie raised its full-year EPS guidance to a range of $12.09 to $12.29, signaling confidence in its ongoing growth strategy. The company plans a $10 billion investment in U.S. manufacturing over the next decade. Notably, AbbVie is focusing on its immunology portfolio, with strong growth in SKYRIZI and RINVOQ sales, which offset declines in HUMIRA. Additionally, AbbVie recently acquired Nimble Therapeutics to expand its immunology portfolio and entered a license agreement with GUBRA to develop an amylin analog for obesity treatment. Lastly, AbbVie’s oncology segment showed promise, with Elihere, an ADC for ovarian cancer, achieving global sales of $179 million.

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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