Piper Sandler assumes coverage of Abbvie stock with Overweight rating

Investing.com - Piper Sandler has assumed coverage of Abbvie (NYSE:ABBV) with an Overweight rating and a price target of $231.00. According to InvestingPro data, analyst targets for ABBV range from $170 to $255, with the company currently trading at a P/E ratio of 93.76x. The stock has demonstrated strong momentum, gaining nearly 15% year-to-date.

The research firm highlighted Abbvie’s favorable position regarding loss of exclusivity (LOE) exposure, noting the company faces no major patent cliffs through the end of the decade, with only Vraylar facing LOE by 2030, representing approximately 6% of projected 2025 global revenue. The company’s strong market position is reflected in its "GOOD" Financial Health score on InvestingPro, with particularly high marks in profitability metrics.

Piper Sandler cited continued expansion of Skyrizi and Rinvoq, particularly in inflammatory bowel disease treatments, as key growth drivers for the pharmaceutical company, along with healthier growth prospects for its oncology segment as Elahere gains momentum.

The firm also pointed to Abbvie’s durable Botox franchise as contributing to high visibility for continued top-line and EBITDA expansion through the end of the decade.

Piper Sandler expressed confidence in Abbvie’s maturing pipeline, including a growing antibody-drug conjugate footprint and next-generation immunology-focused products, positioning the company to weather its own wave of patent expirations through the 2030s, supporting potential multiple expansion from its current EV/2026E EBITDA of approximately 12.5x.

In other recent news, AbbVie reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $2.97, slightly above the forecast of $2.96. The company also exceeded revenue projections, posting $15.4 billion compared to the anticipated $14.99 billion. This performance prompted AbbVie to raise its full-year guidance despite challenges from its Humira product. Bernstein SocGen Group reiterated its Market Perform rating for AbbVie, maintaining a price target of $203.00 following the earnings report. These developments reflect the company’s strong financial performance in the recent quarter.

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