Analyst Evan Seigerman of BMO Capital maintained a Buy rating on AbbVie (ABBV – Research Report), retaining the price target of $215.00.
Evan Seigerman’s rating is based on AbbVie’s strategic move into the obesity treatment market by licensing Gubra’s long-acting Amylin analogue, GUB014295. This acquisition is seen as a positive step for AbbVie, as it aligns with the company’s broader strategy to diversify beyond single agonist GLP1 therapies and explore new modalities. The potential synergies with AbbVie’s existing business areas, such as inflammation and aesthetics, further strengthen the company’s position in the market.
Additionally, the early data for Gubra’s GUB014295 shows promise, with competitive results in terms of dosing and tolerability, which could enhance AbbVie’s portfolio in the obesity/metabolic treatment space. The structured deal, involving upfront payments and milestone royalties, reflects a well-calculated investment in a promising asset. Moreover, AbbVie’s effective management of its existing products, like Skyrizi and Rinvoq, and strategic acquisitions position the company well for future growth, making the stock an attractive buy.
Based on the recent corporate insider activity of 39 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.