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With a market cap of $356.2 billion, North Chicago, Illinois-based AbbVie Inc. (ABBV) operates in the pharmaceutical sector. Known for its innovative therapies, the company offers a diverse portfolio covering immunology, oncology, neuroscience, aesthetics, and eye care, positioning it as a global leader in healthcare solutions.
The drugmaker's shares have outperformed the broader market over the past 52 weeks. ABBV has surged 42.5% over this time frame, while the broader S&P 500 Index ($SPX) has increased 35.8%. In 2024, shares of ABBV are up 29.8%, compared to SPX’s 24.3% rise on a YTD basis.
Looking further, ABBV has significantly outpaced the Health Care Select Sector SPDR Fund’s (XLV) 15.4% gain over the past 52 weeks and 8.6% YTD return.
Shares of AbbVie climbed 6.4% on Oct. 30 after the company reported better-than-expected Q3 adjusted EPS of $3 and revenue of $14.5 billion. This performance was driven by strong sales of newer immunology drugs Rinvoq and Skyrizi, with year-over-year sales growth of 47.4% and 51.5%, respectively, due to expanded usage approvals. The company raised its full-year EPS guidance to $10.90 - $10.94, signaling confidence in continued growth. Additionally, AbbVie's oncology segment benefited from solid sales of Venclexta and the newly acquired Elahere, reinforcing positive investor sentiment.
For the current fiscal year, ending in December, analysts expect ABBV’s EPS to decline 1.4% year-over-year to $10.96 per share. However, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 15 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
This configuration is more bullish than three months ago, with 13 “Strong Buy” ratings on the stock.
On Nov. 6, Guggenheim analyst Vamil Divan raised AbbVie's price target to $221, maintaining a “Buy" rating after the company's strong Q3 earnings, which exceeded expectations in both sales and EPS.
The mean price target of $208.29 represents a premium of only 3.5% to ABBV’s current levels. The Street-high price target of $240 implies a potential upside of 19.3% from the current price.
On the date of publication, Sohini Mondal 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.
