AbbVie (ABBV) has a relatively clean growth profile with limited loss of exclusivity and growth likely at the upper end of large-cap pharma peers, but upside is capped by its premium valuation and a thin near-term late-stage pipeline, BofA Securities said in a note Monday.
The 2026 pipeline is expected to be relatively light, focused mainly on early-stage or life-cycle management programs, the brokerage said.
AbbVie is forecast to post high-single-digit revenue growth and around 13% underlying earnings per share growth, driven by immunology and neuroscience brands and partly offset by continued biosimilar competition to Humira in the US, according to the note.
Investor focus is expected to remain on immunology brands Skyrizi and Rinvoq, with growth projected to continue into 2026 and beyond, while a modest 2026 recovery is anticipated in aesthetics, with the BoNT/E launch dampened by ongoing weakness in demand for dermal fillers, BofA said.
AbbVie's premium valuation already captures its above-peer growth and clear near- to mid-term LOE outlook, while the absence of meaningful pipeline readouts constrains the potential for a re-rating, the brokerage said.
BofA lowered its price target to $233 from $248, and maintained its neutral rating on the stock.
Shares of the company were up 2% in recent trading Monday.
Price: 227.79, Change: +4.47, Percent Change: +2.00
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