AbbVie: Hold Rating Maintained Amid Strong Skyrizi Sales and Valuation Concerns

In a report released yesterday, Luisa Hector from Berenberg Bank maintained a Hold rating on AbbVie (ABBV – Research Report), with a price target of $195.00.

Luisa Hector’s rating is based on a combination of factors including AbbVie’s current valuation and future prospects. The company’s share price has already appreciated significantly, reflecting the increased earnings forecasts driven by strong sales of Skyrizi. This has led to a fair valuation, prompting the decision to maintain a Hold rating while raising the target price to USD195.
Additionally, while Skyrizi’s sales potential is promising, contributing significantly to the company’s net present value, there are concerns such as the recent intangible impairments due to a disappointing drug readout. Furthermore, the pipeline for 2025 appears relatively quiet, with limited catalysts expected. The current trading multiples also suggest that AbbVie’s valuation is full, as it trades above the sector median, reinforcing the Hold recommendation.

In another report released on March 4, Bernstein also reiterated a Hold rating on the stock with a $203.00 price target.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ABBV in relation to earlier this year.