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On Tuesday, Guggenheim Securities updated its financial model for AbbVie (NYSE:ABBV), leading to a slight increase in the price target for the pharmaceutical company’s shares. The new target is set at $216, up from the previous $214, while the firm maintains a Buy rating on the stock. According to InvestingPro data, analyst targets for AbbVie range from $173 to $250, with the company currently trading at $192.34. The stock has shown strong momentum, delivering a 10.68% return in the past week.
The adjustment comes after AbbVie’s first-quarter earnings for 2025 surpassed market expectations, attributed mainly to robust U.S. sales of the company’s drugs Skyrizi and Rinvoq. The positive results were somewhat tempered by weaker sales of Humira and products within their Aesthetics franchise, alongside increased operating expenses. With a market capitalization of $340.25 billion and revenue growth of 5.45% over the last twelve months, AbbVie maintains its position as a prominent player in the biotechnology industry. InvestingPro analysis indicates the company’s overall financial health score is "GOOD," supported by strong profitability metrics.
Abbvie’s management has responded to the strong quarter by raising their full-year 2025 earnings per share (EPS) guidance to a range of $12.09 to $12.29, marking a 10-cent increase from the prior midpoint. Additionally, revenue forecasts for the fiscal year have been modestly increased by approximately $700 million, now targeting around $59.7 billion.
In response to the updated company guidance and the first-quarter performance, Guggenheim’s discounted cash flow (DCF) analysis led to the revised price target. The primary drivers for the target increase are the higher sales estimates for Skyrizi and Rinvoq, which have been key growth drivers for AbbVie.
Guggenheim’s analysis reflects a positive outlook on AbbVie’s ability to continue its strong commercial performance, despite broader macroeconomic concerns and uncertainties, such as tariffs and drug pricing debates, that are currently affecting investor sentiment in the biopharma sector. The firm’s analysts believe that AbbVie’s consistent execution demonstrates a promising trajectory for the company in a challenging market environment. The company offers a solid dividend yield of 3.41% and has maintained dividend payments for 13 consecutive years. For deeper insights into AbbVie’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which include expert analysis and key performance metrics.
In other recent news, AbbVie has 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 has raised its full-year EPS guidance to a range of $12.09 to $12.29, reflecting confidence in its ongoing growth strategy. Additionally, BMO Capital Markets has maintained an Outperform rating on AbbVie stock, with a price target of $215, citing the company’s robust performance and strong growth in its drug portfolio, including Skyrizi and Rinvoq.
In another significant development, the U.S. Food and Drug Administration (FDA) has approved AbbVie’s drug RINVOQ for the treatment of giant cell arteritis, marking it as the first oral Janus Kinase inhibitor for this condition in the United States. This approval is based on positive results from the Phase 3 SELECT-GCA clinical trial. AbbVie has also announced a $10 billion investment plan in U.S. manufacturing over the next decade to support its growth initiatives. The company’s neuroscience portfolio has seen a boost from Vyalev, which demonstrated an impressive initial growth rate of 80%.
Furthermore, AbbVie’s strategic focus on its immunology portfolio, particularly with Skyrizi and Rinvoq, has contributed significantly to its revenue boost, offsetting declines in Humira sales. The firm has also established a patient support program to help reduce out-of-pocket costs for eligible patients using RINVOQ. These recent developments highlight AbbVie’s strong market performance and strategic positioning in the pharmaceutical industry.
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