JPMorgan maintains Overweight rating on AbbVie stock with $200 target

Investing.com - JPMorgan has reiterated its Overweight rating and $200.00 price target on AbbVie (NYSE:ABBV), currently valued at $337 billion, ahead of the company’s second-quarter earnings report scheduled for July 31. According to InvestingPro data, the stock is trading near its Fair Value, with analyst targets ranging from $170 to $250.

The firm expects AbbVie to be well-positioned heading into earnings, citing continued strength from Skyrizi and Rinvoq products along with modest foreign exchange tailwinds that could lead to another guidance increase. JPMorgan’s quarterly estimates align with consensus, projecting sales of $15.0 billion and earnings per share of $2.87. The company has demonstrated solid performance with revenue growth of 5.45% and an impressive gross profit margin of 71% in the last twelve months.

For the full year, JPMorgan forecasts exceed both Street consensus and company guidance, with projected sales of $60.3 billion compared to guidance of approximately $59.7 billion, and earnings per share of $11.90 versus guidance of $11.67-$11.87. The firm notes potential additional upside from Skyrizi, which shows strong prescription trends compared to guidance that implies a significant growth slowdown in the second half of 2025. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.

JPMorgan views AbbVie as well-positioned with no major loss of exclusivity events until the mid-2030s, ongoing growth potential from Skyrizi and Rinvoq, and balance sheet capacity for additional business development to address growth needs in the 2030s.

The firm considers AbbVie’s valuation reasonable at approximately 16 times estimated 2025 earnings relative to the company’s growth profile of high single-digit top-line and low double-digit bottom-line growth from 2025 onward.

In other recent news, AbbVie has announced several significant developments. The company has updated its 2025 earnings guidance to reflect an $823 million expense related to acquired in-process research and development (IPR&D) and milestones, affecting both GAAP and adjusted non-GAAP earnings per share by $0.42. AbbVie also entered a definitive agreement to acquire Capstan Therapeutics for up to $2.1 billion, gaining access to Capstan’s lead asset CPTX2309, a therapy in Phase 1 development for autoimmune diseases. This acquisition is seen positively by Morgan Stanley (NYSE:MS), which reiterated its Overweight rating on AbbVie, noting the strategic expansion of the company’s immunology pipeline.

Additionally, AbbVie has signed an exclusive licensing agreement with IGI Therapeutics for a multiple myeloma treatment, ISB 2001, involving a $1.9 billion deal. The agreement includes $700 million upfront and potential milestone payments, with AbbVie gaining rights to develop and commercialize the treatment in key markets. Furthermore, the U.S. Food and Drug Administration has accepted Allergan (NYSE:AGN) Aesthetics’ application for SKINVIVE by JUVEDERM, targeting neck lines, marking a potential expansion in their aesthetic treatment offerings. These recent activities underscore AbbVie’s strategic focus on expanding its therapeutic and aesthetic portfolios.

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