AbbVie: Strong Buy Rating Due to Minimal LOE Risks and Growth in Key Segments

David Amsellem, an analyst from Piper Sandler, has initiated a new Buy rating on AbbVie (ABBV).

David Amsellem has given his Buy rating due to a combination of factors that highlight AbbVie’s strong position in the pharmaceutical industry. One of the key reasons is AbbVie’s minimal exposure to major loss of exclusivity (LOE) risks through the end of the decade, with only a small percentage of its revenue being affected by LOE. This stability is further supported by the expansion of key products like Skyrizi and Rinvoq, particularly in the inflammatory bowel disease market, and the growth potential in the oncology segment with products like Elahere.
Additionally, AbbVie’s neuromodulator business, particularly Botox, remains a durable asset with significant growth potential. The company’s strategic focus on next-generation immunology and antibody-drug conjugates (ADCs) positions it well for future growth. These factors, combined with a manageable LOE exposure and a robust pipeline, contribute to the expectation of continued top-line and EBITDA expansion, making AbbVie an attractive investment opportunity.

According to TipRanks, Amsellem is a 3-star analyst with an average return of 1.3% and a 46.09% success rate. Amsellem covers the Healthcare sector, focusing on stocks such as Amgen, Biogen, and Teva Pharmaceutical.

In another report released on August 7, Daiwa also upgraded the stock to a Buy with a $214.00 price target.