On Tuesday, TD Cowen maintained a positive stance on shares of AbbVie (NYSE:ABBV), reiterating a Buy rating and a $225.00 price target for the pharmaceutical company. The firm also highlighted AbbVie as a Best Idea for 2025, expecting the stock to outperform its peers. According to InvestingPro data, analyst targets range from $165 to $240, with the stock currently trading near $176.
The analyst at TD Cowen expressed confidence in AbbVie's prospects, citing several factors that contribute to the company's appeal. The expectation for AbbVie to meet or exceed its financial guidance, a top dividend yield, and a reasonable valuation were key points of interest.
InvestingPro data shows AbbVie has raised its dividend for 12 consecutive years, with a current yield of 3.7% and impressive 10.8% dividend growth. The analyst emphasized that AbbVie's growth recovery post-Humira is now gaining momentum, driven by its newer products and not hindered by patent expirations.
AbbVie's research and development capabilities were also praised, with the analyst noting that the company ranks highly among its peers for development prowess. Despite the pipeline receiving minimal attention, the firm believes it is a significant aspect of AbbVie's potential for success.
TD Cowen's outlook for AbbVie is based on the anticipation that the company's shares will surpass the group average in 2025. This positive forecast for AbbVie reflects the firm's belief in the company's strategic positioning and its ability to deliver strong financial performance in the coming years.
In other recent news, AbbVie reported positive results from its Phase 3 TEMPO-2 trial of tavapadon, a potential treatment for early Parkinson's disease. The trial met its primary and key secondary endpoints, demonstrating significant improvement in motor function in patients treated with tavapadon.
Leerink Partners recently upgraded AbbVie's stock to Outperform, citing strong revenue and earnings per share growth. BMO Capital Markets maintained its Outperform rating on AbbVie shares, despite a setback in clinical trials.
Moreover, AbbVie has entered into a strategic partnership with EvolveImmune Therapeutics to develop multispecific biologics targeting cancer. Under the agreement, EvolveImmune will receive $65 million upfront in fees and equity investment from AbbVie.
In financial news, AbbVie's Q3 revenues reached nearly $14.5 billion, surpassing expectations with an operational growth of 4.9%. Adjusted earnings per share for the quarter were $3, leading AbbVie to raise its full-year revenue guidance by $500 million and adjusted EPS guidance to $10.90-$10.94. These recent developments highlight the ongoing advancements and growth at AbbVie.
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