Expanding Immunology And Neuroscience Will Reshape Global Healthcare

AbbVie's analyst price target has increased significantly, rising from $227 to $233 per share. Analysts cite recent positive developments in patent settlements and stronger-than-expected performance across key growth drivers as the main rationales.

Analyst Commentary

Recent research updates have provided a broad perspective on AbbVie's outlook, reflecting notable optimism on strategic developments while also highlighting areas of caution that could influence the company's long-term value proposition.

• Several bullish analysts raised their price targets for AbbVie, some by as much as $25 to $31 per share. This is attributed to recent settlements related to key products like Rinvoq and overall strength in growth drivers.
• The resolution of patent litigation for Rinvoq is viewed as a major positive and has the potential to extend protected market exclusivity in the U.S. through 2037. This is significantly beyond prior consensus expectations and adds substantial modeled share value.
• Positive fundamental performance across franchises such as Skyrizi and Neuroscience, as well as strong quarterly results and increased 2025 guidance, have been cited as reasons for upward target revisions.
• Strategic moves, including acquisitions and partnerships, are seen as further solidifying AbbVie's pipeline and future growth in areas such as Major Depressive Disorder.

• Some bearish analysts have taken a more cautious stance and have moved to a hold position on AbbVie shares, citing uncertainty about the sustainability of recent performance within the broader biopharma segment.
• Aesthetics, one of AbbVie's business segments, continues to face macro headwinds and lags behind other units. This has prompted some caution concerning near-term contributions to overall earnings.
• Questions remain around the broader re-rating of biopharma companies. Some analysts suggest that recent policy developments or temporary trends may not justify aggressive target increases for every large cap in the sector.

What's in the News

• AbbVie joined a consortium with Bristol Myers Squibb, Takeda, Astex Pharmaceuticals, and Johnson & Johnson to share data for developing an AI tool that assists in drug discovery and development (Reuters).
• AbbVie announced the proposed $1.2 billion acquisition of Bretisilocin from Gilgamesh Pharmaceuticals, which would strengthen its neuroscience pipeline for Major Depressive Disorder. Positive Phase 2a data demonstrated a strong efficacy and safety profile (Raymond James).
• Reports indicate AbbVie is in advanced discussions to acquire Gilgamesh Pharmaceuticals in a deal potentially valued at approximately $1 billion, with talks still ongoing (Bloomberg).
• AbbVie raised its full-year 2025 revenue guidance to $60.5 billion, representing a $1.5 billion increase since the start of the year.

Valuation Changes

• Consensus Analyst Price Target has risen from $227.22 to $232.78 per share, reflecting improved sentiment and recent positive business developments.
• The discount rate increased slightly, moving from 7.01% to 7.09%. This signals marginally higher perceived risk or cost of capital in the company’s valuation model.
• Revenue growth projections have edged up from 7.95% to 8.00%, indicating modestly stronger long-term sales expectations.
• Net profit margin decreased marginally from 29.48% to 29.43%, suggesting a slight contraction in profitability assumptions.
• Future P/E ratio estimate has increased from 22.71x to 23.32x, implying a higher expected valuation multiple for AbbVie’s forward earnings.