Wall Street closes at a record for the first time since end of January
Investing.com - RBC Capital reiterated an Outperform rating on Abbvie stock (NYSE:ABBV) with a $260.00 price target. The stock currently trades at $212.40, giving the pharmaceutical giant a market capitalization of $375.69 billion.
The firm expects an in-line quarter for the first quarter of 2026, aligned with consensus estimates and company guidance, particularly for Skyrizi and Rinvoq products. The company is scheduled to report earnings on April 29, 2026.
RBC Capital noted that in-line results may not be sufficient to shift current negative sentiment surrounding the stock. The firm said a clear beat would be needed to change the current outlook heading into the second quarter of 2026, especially as Johnson & Johnson’s Icotyde and Tremfya-IBD launches remain in early stages.
The firm maintains a constructive medium-term view based on solid fundamentals and significant inflammatory bowel disease market opportunity. RBC Capital noted that IL-23 penetration in IBD stands at 15% compared to 65% in psoriasis, with potential for Skyrizi loss of exclusivity extension beyond 2033.
Abbvie trades at approximately 15 times 2026 estimated price-to-earnings ratio, which RBC Capital views as offering value for high single-digit to low double-digit growth. According to InvestingPro analysis, the stock appears overvalued relative to its Fair Value. The company has delivered a strong 26% return over the past year and maintains a 3.3% dividend yield, having raised its dividend for 13 consecutive years. For deeper insights, investors can access a comprehensive Pro Research Report on ABBV, one of 1,400+ US equities covered with expert analysis and actionable intelligence.
In other recent news, AbbVie Inc. announced that its preliminary first-quarter 2026 results are expected to include a $744 million pre-tax expense for acquired in-process research and development (IPR&D) and milestones. This is projected to negatively impact both GAAP and adjusted non-GAAP diluted earnings per share by $0.41 for the quarter. The company noted that these results are preliminary and subject to change. Meanwhile, Guggenheim raised its price target for AbbVie to $249 while maintaining a Buy rating, citing updates to its model ahead of the company’s upcoming earnings release. In contrast, Cantor Fitzgerald lowered its price target to $240, maintaining an Overweight rating but expressing expectations for Skyrizi and Rinvoq to outperform company guidance, though possibly not meeting broader market estimates. Additionally, Allergan Aesthetics, a division of AbbVie, presented data on an investigational botulinum neurotoxin at a dermatology meeting, highlighting promising safety and efficacy results. Guggenheim also reiterated a Buy rating based on trial results from a competitor, emphasizing the competitive landscape for AbbVie’s Skyrizi.
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