AbbVie Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for AbbVie Inc. (ABBV).
Give me a comprehensive price target analysis for AbbVie Inc. (ABBV).
Price Target Analysis for AbbVie Inc. (ABBV)
Executive Summary
AbbVie presents a resilient investment profile with solid dividend yield and favorable long-term growth prospects. The current price hovers around $209.50, positioned near the median analyst target of $214.50. Technical indicators show a positive momentum, with the stock trading above its 50-day moving average and RSI values indicating room for further upside. The company's valuation metrics are high, especially the trailing P/E ratio, but the forward P/E suggests anticipation of earnings growth. The long-term outlook, supported by analyst targets, suggests potential appreciation up to the high target of $255, representing an attractive risk-reward profile.
Fundamental Analysis
| Metric | Value | Analysis |
|---|---|---|
| Market Cap | ~$370B | Large-cap, stable market presence |
| Enterprise Value | ~$434B | Reflects high valuation |
| Trailing P/E | 100x | Elevated, likely due to recent high earnings or market expectations |
| Forward P/E | 17.27x | More reasonable, indicating expected earnings growth |
| PEG Ratio | N/A | Not available |
| Price to Book | -2014.42 | Abnormal, possibly due to accounting factors or market sentiment |
| Return on Equity | 1.13% | Modest, typical for large pharma firms |
| Profit Margins | 6.45% | Stable but room for improvement |
| Dividend Yield | 3.14% | Attractive for income-focused investors |
| Beta | 0.503 | Less volatile than the market |
Earnings Analysis
- Recent earnings show stable EPS, with current reported EPS at approximately $3.27.
- EPS trend over the past year indicates growth from ~$12 to nearly $14, aligning with positive revenue and profit margins.
- Analyst revisions are predominantly upward, with recent increases in EPS estimates over the past 1 and 7 days.
- Earnings are supported by consistent revenue growth and margins, though the high trailing P/E suggests valuation premiums.
Technical Analysis
- The stock trades above its 50-day moving average (~$188.62), indicating short-term bullishness.
- RSI near 84 suggests overbought conditions but still room for momentum-driven rallies.
- MACD remains positive, supporting ongoing upward momentum.
Analyst Consensus & Price Targets
| Data | Value | Interpretation |
|---|---|---|
| Number of Analysts | 26 | Well-covered, reputable consensus |
| Low Target | $170 | Support level, potential downside |
| Median Target | $214.50 | Current fair value estimate |
| High Target | $255 | Upside potential, strong bull case |
Visualized Price Targets
- Support (Low): $170
- Median/Expected: $214.50
- Resist/High: $255
Price Target Analysis (Short, Mid, Long-Term)
| Time Horizon | Price Target | Justification | Key Drivers |
|---|---|---|---|
| Short-Term (3 months) | ~$214 | Leveraging technical momentum, earnings stability | Technical breakout, favorable earnings reports |
| Mid-Term (12 months) | ~$230 - $240 | Earnings growth, pipeline developments, market sentiment | Product launches, pipeline approvals, revenue expansion |
| Long-Term (3+ years) | ~$255 | Structural growth, biotech pipeline, dividend appeal | Innovation, market expansion, demographic trends |
Risks & Opportunities
- Risks: Overvaluation risk, regulatory hurdles, patent expirations on key drugs, macroeconomic pressures.
- Opportunities: Pipeline success, new drug approvals, dividends, M&A activities, strategic collaborations.
Investment Recommendation
Hold with a 12-24 months horizon. The stock has potential to appreciate toward the high target of $255, with supporting technical momentum and steady earnings growth. The current valuation is high, but justified by expectations of future earnings.
This comprehensive outlook suggests AbbVie is well-positioned for continued growth, making it a compelling candidate for investors seeking income and capital appreciation.