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AbbVie Shares Trading At A Discount To Other Pharmaceuticals; Argus Reaffirms With A Buy Rating

AbbVie Shares Trading At A Discount To Other Pharmaceuticals; Argus Reaffirms With A Buy Rating - ABBV

David Toung and Casey Meyers, analysts at Argus Research, reaffirmed a Buy rating on AbbVie Inc (NYSE: ABBV) on Monday with an $85 price target following the company's "strong" second quarter earnings print.

The analysts noted that not only were AbbVie's results driven by sales of Humira and Imbruvica, but its pipeline also "strengthened" following the acquisition of Stemcentrix and a partnership with Boehringer Ingelheim for the commercial rights of a new immunology drug that is in a late stage trial.

The analysts also stated that the earnings print confirmed Imbruvica's "rapid acceptance" which bodes well for future sales. Coupled with the Venclexta drug, AbbVie boasts two "powerful drugs" to treat first- and second-line CLL and other hematogical malignancies.

The analysts also stated that AbbVie's stock is "attractively valued" at just 11.2x their 2017 earnings per share estimate, which is "well below" the average multiple of 14.5 of other companies under Argus' coverage.

Finally, the analysts boosted their full-year 2016 adjusted earnings per share estimate to $4.84 from $4.80 and their 2017 earnings per share estimate to $5.95 from $5.90.

"The company has strengthened its product portfolio and pipeline through several deals over the past 12 months, and continues to post strong sales of Humira, aided by new indications," the analysts concluded.

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DateFirmActionFromTo
Jun 2016BMO CapitalDowngradesOutperformMarket Perform
Jun 2016Morgan StanleyDowngradesOverweightEqual-weight
Jun 2016Cowen & CompanyDowngradesOutperformMarket Perform

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