Nico Chen, an analyst from DBS, maintained the Hold rating on AbbVie (ABBV – Research Report). The associated price target is $183.00.
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Nico Chen has given his Hold rating due to a combination of factors influencing AbbVie’s current market position. Despite the expiration of the Humira patent, which led to a significant drop in its sales, AbbVie has managed to mitigate this impact through the successful approval and sales of Skyrizi and Rinvoq. These drugs have helped stabilize the company’s immunology segment, which is projected to grow significantly in the coming years. Additionally, AbbVie’s venture into the neuroscience sector with drugs like Vraylar is expected to diversify its revenue streams and support steady growth.
However, the Hold rating reflects concerns over ongoing challenges such as the generic competition for Humira biosimilars, which still constitute a substantial portion of AbbVie’s sales. Furthermore, macroeconomic uncertainties have led to a slowdown in the aesthetics segment, impacting consumer demand. While AbbVie maintains a strong operating cash flow and a solid dividend policy, these headwinds suggest a cautious approach, justifying the Hold recommendation with a target price of USD 183.00.
In another report released on April 28, Bank of America Securities also reiterated a Hold rating on the stock with a $204.00 price target.