UPDATE: Credit Suisse Initiates AbbVie at Neutral on Humira Dependence

Credit Suisse initiated AbbVie

with a Neutral rating and a $37.00 price target. Credit Suisse noted, "AbbVie's cross-currents imply minimal stock movement from current price. Growth is modest with 2013-2020 sales and EPS CAGR at 2% and 3% respectively and only 20% revenue contribution from the pipeline by 2020. Humira contribution to ABBV is significant; contribution to sales '13-20 is at minimum 50%, and over 70% to profits. Positives: ~9% free cash flow yield, 4.3% dividend yield, 11.9x P/E (pharma 2013 average 13.9x), options on elagolix, ABT-199 for lymphoma & business development (BD). Negatives: overdependence on Humira and long-term competitive threat from orals and biosimilars, HCV franchise expectations already realistic." AbbVie closed at $75.39 on Wednesday.