BofA Merrill Lynch Reiterates on AbbVie, Raises PO
In a report published Tuesday, Bank of America Merrill Lynch analyst Gregg Gilbert reiterated a Buy rating on AbbVie (NYSE: ABBV), raising its price target from $53.00 to $56.00.
According to the report, in light of recent positive trial results and a survey published by BofA's biotech team, estimates have been revisited for ABBV's late-stage HCV regimen, increasing their sales.
“Importantly, we continue to assume solid annual sales growth for Humira (albeit at a slowing rate) until 2017 when we begin to build in modest shrinkage due to increased competition, biosimilar or otherwise,” the report said. “We remain Buy rated and continue to like ABBV shares based on the valuation, a solid/growing dividend, and low pipeline expectations.”
Some highlights from the report included:
-”The positive trial results reinforce our confidence that the remaining Phase III data should mimic what we saw in Phase II.” -”Risks to our PO are sector-rotation to non-defensive stocks, greater than expected pressure from US healthcare reform and/or European price cuts, adverse regulatory and political actions, changes to tax laws, rates, and/or treaties that increase the tax rate, pipeline failures, and other general R&D risks.”
ABBV closed Monday at $52.57.
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