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Headquartered in North Chicago, AbbVie Inc. (ABBV) is a prominent global pharmaceutical leader with a market cap of $334.3 billion. The company excels in immunology with treatments like Humira, Skyrizi, and Rinvoq and in oncology with Imbruvica and Venclexta.
Shares of the pharma giant have surpassed the broader market over the past year. While ABBV stock has surged 26.7% over this time frame, the S&P 500 Index ($SPX) has rallied by 18.5%. In 2024, the stock rose 22.2%, compared to SPX’s 12.1% return on a YTD basis.
Taking a closer look, ABBV has also outperformed the Vaneck Pharmaceutical ETF (PPH), which has gained 17.9% over the past year.
On Aug. 1, ABBV shares edged up 2.4% following the announcement of its acquisition of Cerevel Therapeutics Holdings, Inc. (CERE). This integration strengthens AbbVie's neuroscience expertise and supports its long-term growth strategy. The company also welcomed the Cerevel team, expressing excitement about their collaboration to advance treatments for neurological and psychiatric conditions.
Moreover, on Jul. 25, ABBV stock rose 3.4% after AbbVie’s Q2 earnings release, which exceeded the analysts’ revenue and EPS forecasts. The company also raised its adjusted EPS guidance for 2024 despite the slower recovery in aesthetic products, supporting a positive outlook for the second half of the year.
However, for the current fiscal year, ending in December, analysts expect ABBV’s EPS to decline 2.4% year over year to $10.84. Nonetheless, the company’s earnings surprise history is solid, exceeding the consensus estimate in each of the last four quarters.
Abbvie stock has a consensus “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 13 recommend a "Strong Buy," two suggest a "Moderate Buy," and seven advise a "Hold."
The consensus rating is slightly more bullish than three months ago, with 12 analysts suggesting a “Strong Buy.”
On Jul. 26, Wells Fargo (WFC) analyst Mohit Bansal reiterated a “Buy” rating on ABBV stock with a $200 price target. He cited AbbVie's strong Q2 performance, including a revenue of $14.5 billion that exceeded expectations and an upbeat EPS beat. The company's effective management of Humira’s decline, along with robust performances from Skyrizi and Rinvoq, supports the “Buy” rating.
The mean price target of $192.76 suggests a 1.8% premium to ABBV from current levels. The Street-high target of $214 represents an upside potential of 13.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
