Gold rally may be losing steam but no major correction seen: DB
Investing.com - Piper Sandler raised its price target on Abbvie (NYSE:ABBV) to $284.00 from $231.00 on Friday, while maintaining an Overweight rating on the pharmaceutical company’s stock. The stock, currently trading near $231, has shown impressive momentum with a 34.8% gain over the past six months and is approaching its 52-week high of $244.81.
The investment firm cited Abbvie’s settlements with generic filers regarding its Rinvoq medication as a key factor in the decision, alongside strong performance across the company’s commercial portfolio, with aesthetics noted as an exception that was not considered concerning. The company’s commercial success is reflected in its robust revenue of $58.3 billion and healthy revenue growth of 6.1% in the last twelve months.
Piper Sandler highlighted Abbvie as one of few pharmaceutical companies offering what it described as a "trifecta" of significant organic top-line and EBITDA growth, asset durability, and extensive business development and M&A capabilities.
The firm compared Abbvie to peer Eli Lilly (NYSE:LLY), noting that while Lilly trades at an enterprise value to 2026 estimated EBITDA of approximately 24x compared to Abbvie’s 15x, some degree of multiple convergence could be expected despite Lilly’s more aggressive organic growth profile.
Abbvie’s price target increase follows Piper Sandler’s previous analysis from September 11, 2025, which detailed the firm’s thinking on the company following the Rinvoq settlement.
In other recent news, AbbVie reported positive outcomes from its Phase 2 trial for treating upper limb essential tremor with onabotulinumtoxinA, showing significant improvement over placebo. The ELATE trial met its primary endpoint and all six secondary endpoints, indicating promising results for patients. Additionally, AbbVie updated its 2025 earnings guidance, reflecting a $2.7 billion expense related to in-process research and development, which is expected to impact earnings per share by $1.50. The company has also embarked on a $70 million expansion of its biologics facility in Worcester, Massachusetts, to boost manufacturing capacity for immunology and oncology drugs.
Furthermore, AbbVie submitted an FDA application for Pivekimab sunirine, aimed at treating the rare blood cancer Blastic Plasmacytoid Dendritic Cell Neoplasm, based on favorable trial data. In analyst news, Cantor Fitzgerald raised its price target for AbbVie to $250, citing strong performance from the drug Skyrizi, which surpassed consensus estimates by $51 million. This performance prompted AbbVie to increase its topline guidance. These developments highlight AbbVie’s ongoing efforts in research, expansion, and drug development.
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