AbbVie (ABBV – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Tim Anderson from Bank of America Securities maintained a Hold rating on the stock and has a $200.00 price target.
Tim Anderson has given his Hold rating due to a combination of factors related to AbbVie’s current market position and future outlook. AbbVie has shown strong performance year-to-date, benefiting from defensive inflows, which has resulted in a 15% increase in its share price compared to a 1% increase in the S&P 500. However, this performance has pushed the stock’s valuation to its upper limits, which is a concern for future growth potential.
Despite AbbVie’s strong positioning with less patent expiry burden and promising franchises like Skyrizi and Rinvoq, the current high valuation already accounts for these strengths. Additionally, the company is expected to have a light catalyst flow in 2025, which could impact future performance. Therefore, while AbbVie is well-positioned, the current valuation and lack of near-term catalysts justify a Neutral or Hold rating, with a price objective of $200.