Raymond James initiated coverage of AbbVie Inc (NYSE:ABBV) with an Outperform rating and $177 price target in a note Friday.
Analysts told investors that looking beyond Humira, there are several layers for the company to set up long-term growth.
"ABBV appears to be managing the Humira U.S. LOE better than original expectations (despite numerous uncertainties there), while at the same time executing very well with Skyrizi and Rinvoq driving significant growth across multiple indications within its key Immunology franchise, with potential for those drugs to exceed peak Humira sales and offset biosimilar competition over time," they wrote.
They believe other key growth engines include Aesthetics, which the firm believes has considerable headroom, and Neuroscience, which they state has become more robust.
"When combined with Immunology, we forecast ABBV will return to solid mid- to high-single-digit top-and bottom-line growth in 2025 and beyond, even with continued pressure on Hem/Onc, mainly from Imbruvica, and assuming just very limited pipeline contribution," said the analysts.
Furthermore, Raymond James anticipates more aggressive M&A in the next six to 18 months "as management gets better visibility on the Humira biosimilar impact."