Goldman Sachs Assumes Abbvie (ABBV) at Neutral

Goldman Sachs analyst Asad Haider assumes coverage on Abbvie (NYSE: ABBV) with a Neutral rating and a price target of $194.00.

The analyst comments: "We assume coverage of ABBV with a Neutral rating (from Buy), with a 12-month price target of $194 (from $212), noting that the strong growth algorithm for commercial powerhouses Skyrizi and Rinvoq -- the two key pillars of the company's core Immunology franchise driving the company's topline -- has now become more fully appreciated with mid-term Visible Alpha consensus forecasts sitting above management's guidance for the first time since these drugs launched. In our view, with no major pipeline catalysts ahead, this puts the onus for positive surprises to emerge out of other parts of ABBV's portfolio where we a see tougher near-term setup.

For the Aesthetics franchise (~10% of total revenues), we expect challenging conditions to continue and on the back of sluggish macro-economic dynamics related to inflation and suppressed consumer sentiment and we expect investors to put a higher weighting on these headwinds to the business given elevated recession-risk per GS economists. Our KOL diligence also points to intensifying competitive headwinds in the injectable aesthetics market, and potential commercialization risks around BonT/E, the company's novel rapid acting version of Botox for the treatment of severe glabellar lines which has been framed by management as an important new innovation that will stimulate the neurotoxin market by increasing the funnel and flow into Botox, and hence grow Botox share"

For an analyst ratings summary and ratings history on Abbvie click here. For more ratings news on Abbvie click here.

Shares of Abbvie closed at $186.55 yesterday.

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