HSBC Raises Price Target on AbbVie to $315 Amid Growth Catalysts
On Sept. 10, HSBC analyst Rajesh Kumar raised his price target for AbbVie from $300 to $315 per share while maintaining a 'buy' rating. The increase is based on the potential growth of two key drugs—Skyrizi and Rinvoq—as they gain expanded indications in diseases like vitiligo and Crohn’s disease, which could boost peak sales forecasts for both products. Kumar believes this pipeline progress may shift AbbVie's earnings growth from low mid-single digits to high mid-single digits. This would likely lead to a rerating of the stock, currently trading at around 16 times forward earnings, potentially pushing it into the high-teens or even low-20s valuation range. Additionally, AbbVie’s recent $10.9 billion acquisition of Apogee Therapeutics is expected to enhance its immunology pipeline and drive future growth. AbbVie's new flagship drugs already outperform former top product Humira in sales by a significant margin—$5.5 billion for Skyrizi and $2.5 billion for Rinvoq compared to just $756 million from Humira last quarter. While the stock is currently priced at a premium relative to other pharmaceutical companies, its strong fundamentals suggest potential long-term upside.
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