AbbVie Stock (ABBV): Berenberg Bank Initiates $98 Price Target

By Amit Chowdhry ● September 29, 2020
  • Berenberg Bank initiated a $98 price target for AbbVie (NYSE:ABBV) in a note to investors today.

In a note to investors today, Berenberg Bank initiated a $98 price target for AbbVie (NYSE:ABBV). Berenberg Bank set a “hold” rating for AbbVie stock as well. On Monday, the stock price of AbbVie closed at $87.28.

Some of the other investment analysts who issued price targets on AbbVie include:

9/27/20 – Mizuho reiterated its “Buy” rating with a price target of $111

9/2/20 – Citigroup increased its price target from $98 to $105 and rated the stock as a buy

8/20/20 – Morgan Stanley increased its price target from $95 to $108 and rated the stock as overweight

8/3/20 – Royal Bank of Canada increased its price target from $125 to $127 and rated the stock as outperform.

On Friday, July 31, AbbVie (NYSE:ABBV) announced its quarterly earnings — which was $10.43 billion in revenue. That was well above Wall Street expectations. And revenue is up 26.3% year-over-year.

What Does AbbVie Do?

AbbVie is a biopharmaceutical company that originated as a spin-off of Abbott Laboratories in 2012. AbbVie is a company that develops, manufactures, and sells pharmaceuticals such as Humira (an injection for autoimmune and intestinal Behçet’s diseases), Imbruvica (treats adult patients with chronic lymphocytic leukemia, small lymphocytic lymphoma, mantle cell lymphoma, waldenström’s macroglobulinemia, marginal zone lymphoma, and chronic graft versus host disease), Venclexta (a BCL-2 inhibitor for treating adults with chronic lymphocytic leukemia or small lymphocytic lymphoma), Viekira Pak (interferon-free therapy to treat adults with genotype 1 chronic hepatitis C virus), Technivie (interferon-free therapy to treat adults with genotype 1 chronic hepatitis C virus), and Mavyret (treats patients with chronic hepatitis C virus genotype 1-6 infection).

In 2023, AbbVie will lose its patent protection for Humira. But Humira’s patents expired in Europe in October 2018 so the revenue for the drug has been dropping rapidly overseas. And Humira faces competition from Amgevita by Amgen, Imraldi by Biogen and Samsung Bioepis, Hyrimoz by Novartis, Hulio by Mylan, and Idacio by Fresenius Medical Care. And AbbVie countered its competition by lowering the price of Humira in European markets.

AbbVie has been diversifying its operations to reduce its dependence on Humira as well. For example, AbbVie is developing Skyrizi and Rinvoq. The FDA approved Skyrizi for the treatment of plaque psoriasis and Rinvoq for rheumatoid arthritis.

Imbruvica and Venclexta have also been showing tremendous growth for cancer treatments as those drugs generate over $6 billion per year in revenue, according to Fool.com.

Acquisition Of Allergan

Last year, AbbVie announced it was buying Allergan in a blockbuster $63 billion deal last year. And the deal closed in May 2020.

Through the acquisition of Allergan, AbbVie integrates Ubrelvy (migraine pain), Botox Therapeutics (aesthetics business), Juvederm (injectable filler), and Vraylar (bipolar disorder and schizophrenia) into its pipeline.

Disclosure: I have a small number of AbbVie shares in my portfolio.