The Analyst Verdict: AbbVie In The Eyes Of 5 Experts

5 analysts have expressed a variety of opinions on AbbVie ABBV over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $190.4, a high estimate of $200.00, and a low estimate of $180.00. Highlighting a 0.18% decrease, the current average has fallen from the previous average price target of $190.75.

Investigating Analyst Ratings: An Elaborate Study

The perception of AbbVie by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to AbbVie. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of AbbVie compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Capture valuable insights into AbbVie's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on AbbVie analyst ratings.

Get to Know AbbVie Better

AbbVie is a pharmaceutical firm with a strong exposure to immunology (with Humira, Skyrizi, and Rinvoq) and oncology (with Imbruvica and Venclexta). The company was spun off from Abbott in early 2013. The 2020 acquisition of Allergan added several new products and drugs in aesthetics (including Botox).

AbbVie: Financial Performance Dissected

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining AbbVie's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.7% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: AbbVie's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 11.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AbbVie's ROE excels beyond industry benchmarks, reaching 14.8%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): AbbVie's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.96%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: AbbVie's debt-to-equity ratio is notably higher than the industry average. With a ratio of 9.24, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.