UPDATE: BMO Capital Markets Initiates AbbVie at Outperform on Yield, Humira Support

BMO Capital Markets initiated coverage on AbbVie

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.