UPDATE: BMO Capital Markets Initiates AbbVie at Outperform on Yield, Humira Support
BMO Capital Markets initiated coverage on AbbVie (NYSE: ABBV) with an Outperform rating and a $39 price target.
BMO Capital Markets commented, "We would be opportunistic buyers of ABBV in the low- to mid-$30s range. We believe the dividend yield (4.6%-5.3%) should support the stock at these levels. In short, Humira should give AbbVie plenty of time and cash to 1) develop its economically attractive specialty focused pipeline (e.g., Hep-C oral regimen expected in 2015), 2) return 50%-60% of its FCF to shareholders as dividends and share buybacks, and 3) explore longer-term strategic options.
AbbVie closed at $34.16 on Monday.
Latest Ratings for ABBV
|Apr 2015||BMO Capital||Maintains||Outperform|
|Apr 2015||BMO Capital||Upgrades||Market Perform||Outperform|
|Feb 2015||Citigroup||Initiates Coverage on||Sell|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.