Hold Rating on AbbVie Amid Revenue Decline and Profitability Concerns

Bank of America Securities analyst Geoff Meacham has maintained their neutral stance on ABBV stock, giving a Hold rating on April 19.

Geoff Meacham has given his Hold rating due to a combination of factors which include a nuanced outlook for AbbVie’s financial performance. The analyst notes that the latest consensus estimates indicate a slight decrease in total revenue for the first quarter of 2024, as well as a more significant decrease in adjusted EPS, signaling potential challenges ahead for the company. Additionally, the report suggests there are key questions regarding AbbVie’s future operations and product uptake that investors are looking to be addressed in the upcoming earnings call.

Moreover, Meacham’s assessment incorporates a margin analysis that shows a slight discrepancy between Bank of America’s and the consensus operating margins, suggesting some caution about AbbVie’s profitability. The Hold rating is supported by a price objective that is marginally higher than the current price, implying limited upside potential in the near term. This cautious stance reflects uncertainties in both AbbVie’s contracting assumptions for its inflammation and immunology (I&I) segment and the impact on its 2024 guidance, as well as broader questions about product performance and corporate strategy moving forward.

In another report released on April 19, Leerink Partners also maintained a Hold rating on the stock with a $88.00 price target.

ABBV’s price has also changed moderately for the past six months – from $145.260 to $167.290, which is a 15.17% increase.

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AbbVie (ABBV) Company Description:

AbbVie, Inc. is a biopharmaceutical company focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women’s health and gastroenterology. The company was founded on October 19, 2011 and is headquartered in North Chicago, IL.