Cantor Fitzgerald reiterates Overweight rating on AbbVie stock

Published 14/10/2025, 12:44
Cantor Fitzgerald reiterates Overweight rating on AbbVie stock

Investing.com - Cantor Fitzgerald has maintained its Overweight rating and $250.00 price target on AbbVie (NYSE:ABBV) while updating its earnings model to reflect tax impacts from a planned IPR&D charge.

The research firm has revised its third-quarter 2025 earnings per share estimate downward from $2.06 to $1.82, compared to AbbVie’s guidance range of $1.74-1.78, to account for the $1.50 per share after-tax impact from the IPR&D charge.

Cantor Fitzgerald increased its projected tax rate for the quarter to approximately 25% from about 16%, noting that its previous model "inappropriately assumed some tax shielding" for the charge.

The firm explained that the $2.68 billion IPR&D charge AbbVie has guided for is not tax deductible, resulting in third-quarter tax levels that are "now roughly on par with prior quarters."

All other estimates in Cantor’s model remain unchanged, with only projected taxes, net income, and EPS figures being adjusted to better reflect the financial impact of the charge.

In other recent news, AbbVie has announced several developments that may interest investors. The company reported positive results from its Phase 2 trial of onabotulinumtoxinA (BOTOX) for treating upper limb essential tremor, achieving significant improvement compared to a placebo. Additionally, the U.S. Food and Drug Administration approved an updated indication for AbbVie’s RINVOQ, now allowing its use in treating ulcerative colitis and Crohn’s disease in patients where TNF blockers are not advisable. However, Erste Group downgraded AbbVie’s stock rating from Buy to Hold following a reduction in the company’s full-year 2025 adjusted earnings per share guidance. Meanwhile, Piper Sandler increased its price target for AbbVie to $284, citing strong performance across the company’s commercial portfolio, except for aesthetics. Cantor Fitzgerald also raised its price target to $250, highlighting Skyrizi’s performance, which exceeded consensus estimates and led to an increase in AbbVie’s topline guidance. These updates reflect a mix of positive clinical and regulatory news, alongside analyst adjustments based on financial projections.

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