High-Yield AbbVie Gains Momentum: A 20% Upside Is in Sight

Core Insights - AbbVie has successfully navigated the challenges of losing patent protection for Humira, maintaining growth through its strong immunology portfolio and diversification efforts [1][2] - Despite a significant decline in Humira sales, AbbVie has seen substantial increases in sales from Rinvoq and Skyrizi, which are expected to continue to grow [2][3] Financial Performance - AbbVie reported Q3 sales of $14.46 billion, reflecting a 3.8% year-over-year increase, surpassing consensus estimates by 120 basis points [2][3] - The immunology segment grew by 4.8%, driven by a 13% increase in oncology sales and a 15.6% increase in neuroscience sales [2][3] - Adjusted earnings reached $3.00, up 1.7% year-over-year, exceeding forecasts by 270 basis points, indicating strong financial health [3] Guidance and Analyst Reactions - AbbVie raised its adjusted diluted EPS guidance, indicating strong operational momentum and expectations for continued growth in 2025 [4][5] - Analysts have responded positively to AbbVie's Q3 results, with all tracked revisions indicating higher price targets, suggesting a bullish outlook for the stock [5][6] Market Performance - Following the Q3 release, AbbVie’s stock price increased by 7%, reaching a new all-time high, supported by strong trading volume [7] - Technical indicators suggest a continued uptrend, with price targets ranging from $212 to $220 aligning with analyst revisions [7] Dividend and Capital Return - AbbVie offers a solid dividend yield of over 3.2%, which is significantly higher than the broad market average, indicating strong capital return potential [6]