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Inside AbbVie’s Analyst Recommendations in 2016

Margaret Patrick - Author
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Aug. 18 2020, Updated 5:16 a.m. ET

Analyst recommendations

Based on recommendations from 24 brokerage firms, a Bloomberg survey reported that 59.1% of analysts gave AbbVie (ABBV) a “buy” recommendation, while 36.4% of analysts gave the stock a “hold” recommendation, and 4.5% gave a “sell” recommendation.

The consensus 12-month target price for the stock is $70.41, which represents a rise of 17.4% from the stock’s last price of $59.98 on June 21, 2016.

The majority of analysts have given positive recommendations for AbbVie, mainly on account of its strong research and development pipeline, which involves eight late-stage drugs spread across oncology, immunology, and neuroscience segments. This will enable the company to diversify its overreliance on Humira’s sales after 2020. AbbVie expects that the eight pipeline assets together have a revenue potential in the range of $25 billion–$30 billion.

Notably, AbbVie makes up about 3.5% of the Health Care Select Sector SPDR Fund’s (XLV) total portfolio holdings.

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Peer comparisons

Based on Bloomberg survey of 25 broker firms,  Biogen (BIIB) received a “buy” recommendation from 62.5% of firms and “hold” recommendation from 37.5% of firms. None of the firms rated Biogen a “sell.”

Among 29 brokerage firms surveyed by Bloomberg for Celgene (CELG), 76.9% of firms gave it a “buy” recommendation, while 19.2% gave it a “hold” recommendation, and 3.8% gave it a “sell” recommendation.

Based on the recommendations of 29 broker firms in a Bloomberg survey, Gilead Sciences (GILD) received “buy” recommendations from 63.% of firms and “hold” recommendations from 37% of firms. None of the firms rated Gilead Sciences as a “sell.”

Now let’s discuss how the acquisition of Stemcentrx has added to AbbVie’s research and development capabilities.

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