AbbVie: Premium Valuation, Strong Long-Duration Growth, but Balanced Risk/Reward Supports Hold Rating

AbbVie, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Yee from UBS maintained a Hold rating on the stock and has a $240.00 price target.

Michael Yee has given his Hold rating due to a combination of factors related to AbbVie’s current valuation and future competitive landscape. He notes that the stock has already re-rated meaningfully and now trades at the upper end of its historical earnings multiple range on 2027 estimates, leaving less room for further multiple expansion. While he expects AbbVie to continue delivering solid results, particularly as Skyrizi remains underpenetrated in inflammatory bowel disease, he also highlights growing competitive threats starting in 2026–2027 from Johnson & Johnson’s Tremfya and a new oral IL-23 psoriasis treatment. In addition, he points out some policy-related uncertainty, as AbbVie has not yet entered into a Most Favored Nation agreement, which could be a modest overhang given its reliance on several major revenue drivers.

At the same time, Yee recognizes meaningful positives that support a balanced, rather than negative, view. He emphasizes that Skyrizi and Rinvoq are performing strongly and have long-dated exclusivity, creating a relatively scarce long-duration growth profile versus large-cap pharma peers. AbbVie is expected to execute well across its immunology and inflammation franchise, supported by ongoing indication and label expansions for both drugs, which can further lift revenue. However, with the share price near all-time highs and consensus expectations for Skyrizi and Rinvoq sales already ahead of prior company guidance, he believes much of this growth is already reflected in the current price. On this basis, his $240 price target, derived from applying a premium multiple to projected 2027 earnings, implies a fairly valued stock with a largely balanced risk/reward, justifying a Hold recommendation.

According to TipRanks, Yee is a 3-star analyst with an average return of 1.4% and a 42.83% success rate. Yee covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Gilead Sciences, and Pfizer.