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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%.
