AbbVie's Promising Leap Towards Long-Term Growth: Analyst

Raymond James initiated coverage on AbbVie Inc ABBV as the company looks beyond Humira's loss of exclusivity and has several levers to set up long-term growth.

Analysts Gary Nachman and Denis Reznik have initiated with an Outperform rating and a price target of $177.

ABBV is showcasing resilience and adaptability, adeptly navigating the U.S. loss of exclusivity (LOE) for Humira, surpassing initial projections.

The portfolio diversification, complemented by Skyrizi and Rinvoq's multi-indication approval, paints a promising outlook for AbbVie. 

Raymond James anticipates a resurgence of mid- to high-single-digit growth in both the top and bottom lines by 2025, despite the anticipated pressures on the Hematology/Oncology sectors, primarily due to Imbruvica, and assumes a minimal contribution from the emerging pipeline.

ABBV's strategic outlook is intertwined with proactive mergers and acquisitions. Over the next 6-18 months, the market can expect ABBV to amplify its M&A activity. 

ABBV's previous successful integration with Allergan underscores its competency in executing M&As, amplifying investor confidence.

While eyes are set on grander M&A horizons, the company remains vigilant, exploring opportunities to augment its pipeline. 

The amalgamation of strategic M&As and pipeline expansion is poised to fortify ABBV's market position, providing a cushion against Humira LOE and pressures from Imbruvica and fostering a diversified, resilient portfolio.

Price Action: ABBV shares are down 1.83% at $149.47 on the last check Friday.