Multiple Strategies for Ensuring Long-Term Growth at AbbVie

Raymond James has initiated coverage of AbbVie Inc with an Outperform rating and a target price of $177, according to a note released on Friday.

Analysts conveyed to investors that, aside from Humira, AbbVie has several avenues to establish long-term growth. They observed that the company appears to be managing the impending loss of exclusivity for Humira in the U.S. better than previously expected, despite various uncertainties. Meanwhile, AbbVie is successfully leveraging drugs like Skyrizi and Rinvoq, which are significantly growing sales across multiple indications within its key Immunology division. There is also potential for these products to surpass peak Humira sales and mitigate the effects of biosimilar competition over time.

Additionally, analysts highlighted other promising growth areas, such as the Aesthetics sector, which they believe has substantial potential, and the Neuroscience division, which has become increasingly robust.

When taking into account the Immunology division, the analysts forecast that AbbVie could return to solid mid- to high-single-digit growth for both revenue and earnings in 2025 and beyond, even considering ongoing challenges in Hematology/Oncology, particularly from Imbruvica, and assuming only modest contributions from their pipeline.

Furthermore, Raymond James expects to see more aggressive mergers and acquisitions in the next six to 18 months as AbbVie’s management gains clearer insights regarding the impact of Humira biosimilars.