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What Do Analysts Recommend for AbbVie?

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Updated

Analysts’ recommendations

Analysts updated their recommendations for AbbVie (ABBV) after the release of its 1Q16 earnings on April 28, 2016.

In addition to the strength of the company’s existing business, the new recommendations also consider the probability of the success of AbbVie’s Stemcentrx acquisition and the deal’s contribution to the combined company’s earnings in future quarters.

The above table shows 16 brokerage companies and their price targets for AbbVie. The consensus 12-month target price for the company is $71.29, which translates to a return of about 16.9% compared to AbbVie’s share price on April 29, 2016.

If the company proves successful in realizing these projections, it may see a rise in its share price as well as in the price of the iShares U.S. Healthcare ETF (IYH). AbbVie makes up about 3.5% of IYH’s total portfolio holdings.

In Bloomberg’s survey of 24 brokerage companies on April 29, 2016, about 68.2% of brokers rated AbbVie as a “buy,” while 27.3% rated the company as a “hold.” 4.5% of the surveyed brokers rated AbbVie as a “sell.”

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Analysts’ recommendations for AbbVie’s peers

In Bloomberg’s survey of 29 brokerage companies on April 29, about 50.0% of brokers rated Amgen (AMGN) as a “buy,” while 46.2% rated the company as a “hold.” 3.8% of the surveyed brokers rated Amgen as a “sell.”

In Bloomberg’s survey of 29 brokerage companies on April 29, about 80.8% of brokers rated Celgene (CELG) as a “buy,” while 15.4% rated the company as a “hold.” 3.8% of the surveyed brokers rated Celgene as a “sell.”

In Bloomberg’s survey of 30 brokerage companies on April 29, about 63.0% of brokers rated Gilead Sciences (GILD) as a “buy,” while 37.0% rated the company as a “hold.” No surveyed brokers rated Gilead Sciences as a “sell.”

In subsequent articles, we’ll explore in detail the synergies of the proposed AbbVie–StemCentrx deal and its impact on AbbVie’s valuations in 2016.

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