AbbVie Stock Outlook: Is Wall Street Bullish or Bearish?
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North Chicago, Illinois-based AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. Valued at a market cap of $348.3 billion, it researches, develops, manufactures, and markets innovative medicines and therapies across a range of therapeutic areas.
This healthcare giant has lagged behind the broader market over the past 52 weeks. Shares of AbbVie have gained 4.2% over this time frame, while the broader S&P 500 Index ($SPX) has surged 18.4%. Nonetheless, on a YTD basis, the stock is up 11%, outpacing SPX’s 7.6% return.
Zooming in further, ABBV has outperformed the Invesco Pharmaceuticals ETF’s (PJP) 2.1% drop over the past 52 weeks and 1.3% rise on a YTD basis.
Shares of ABBV closed down marginally on Jul. 31, despite reporting stronger-than-expected Q2 earnings results. The company’s revenue improved 6.6% year-over-year to $15.4 billion, surpassing consensus estimates by 2.3%. Further, its adjusted EPS came in at $2.97, up 12.1% from the prior-year quarter and 2.8% above analyst estimates. Additionally, ABBV raised its fiscal 2025 adjusted EPS guidance in the range of $11.88 to $12.08. While the stock edged lower that day, it rose 3.3% in the following trading session.
For the current fiscal year, ending in December, analysts expect ABBV’s EPS to grow 19.1% year over year to $12.05. The company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters.
Among the 27 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 14 “Strong Buy,” two "Moderate Buy,” and 11 “Hold” ratings.
This configuration is slightly less bullish than three months ago, with 15 analysts suggesting a “Strong Buy” rating.
On Aug. 4, Evan Seigerman from BMO Capital maintained a "Buy" rating on ABBV with a price target of $215, indicating a 9% potential upside from the current levels.
The mean price target of $212.08 represents a 7.6% premium from ABBV’s current price levels, while the Street-high price target of $255 suggests a notable upside potential of 29.3%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.