Cantor Fitzgerald Starts Abbvie (ABBV) at Overweight

Cantor Fitzgerald analyst Louise Chen initiates coverage on Abbvie (NYSE: ABBV) with a Overweight rating and a price target of $200.00.

The analyst comments "AbbVie (ABBV) is a global pharma company focused on several key therapeutic areas including: immunology, oncology, neuroscience, eye care, and aesthetics. We are initiating coverage of ABBV with an Overweight (OW) rating and 12-month Price Target (PT) of $200. We arrive at our PT by using a DCF analysis. We believe the company has successfully positioned itself to absorb Humira biosimilar erosion and achieve modest operational revenue growth. This should be followed by a return to robust growth in 2025E, and our diligence also supports management's long-term guidance of a high single-digit CAGR through the end of the decade (2024 base year through 2029). This is shortly after one of the largest losses of exclusivity (LOE) in the Pharma industry. We think the peak sales potential of Skyrizi, Rinvoq, emraclidine as well ABBV's pipeline are underappreciated, and the tail for Humira will be manageable at $4B-$5B in annual sales. Therefore, upward earnings estimate revisions and multiple expansion (from an 11.8x 2025E EV/EBIT multiple to 18.0x-20.0x) should drive ABBV shares higher."

For an analyst ratings summary and ratings history on Abbvie click here. For more ratings news on Abbvie click here.

Shares of Abbvie closed at $164.35 yesterday.

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