UPDATE: J.P. Morgan Initiates Coverage on AbbVie with Neutral Rating, $38 PT

In a report published Wednesday, J.P. Morgan & Co. initiated coverage on AbbVie

with a Neutral rating and $38.00 price target. J.P. Morgan noted, “We are initiating coverage of ABBV shares with a Neutral rating and $38 YE'13 price target. We see AbbVie as essentially a Humira story until the company is able to further diversify its business. While Humira is a well-positioned franchise and we are above the Street with our estimates over the next several years, we do not see ABBV shares getting credit for these results given the longer-term competitive threats facing the product. Rather, we believe portfolio diversification will be a key driver of multiple expansion and outperformance for the stock, and this remains several years away, in our view.” AbbVie closed on Monday at $34.16.