Stockchase Opinions

Jim Lebenthal AbbVie Inc. ABBV-N BUY Oct 25, 2024

Management has replaced key drug, Humira, and made key acquisitions. Are doing all the right things.

$187.850

Stock price when the opinion was issued

0
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BUY

Have a great drug pipeline.

BUY

They beat top and bottom and raised guidance. A nice quarter. Their key drugs were way up. They have a strong pipeline.

PAST TOP PICK
(A Top Pick Dec 01/23, Up 45%)

Is one of the largest companies in bio-medicals. Growth has been impressive. Are expanding into neuro-science, Alzheimer's. They clearly replaced a key drug going off-patent with a good pipeline. Two anti-inflammatory drugs are outperforming expectations.

BUY ON WEAKNESS

He added more AbbVie. Obviously, today's news about the disappointing drug trials is not good. This schizophrenia drug was projected to make $1.1 billion in sales four years from now. But today's share plunge is too great, overdone. He might add on even more weakness. Trades at 14x forward PE and pays a 3.9% dividend. It's a great company on sale. They have a long track record of making acquisitions.

WEAK BUY

The drug companies are in the dog house. If you buy this, you must be patient. It yields 4%.

TOP PICK

It is a large cap biotech with a temporary pullback. Humera went off patent so there are some declines in revenue. He really likes the re-iteration of Humera which has taken off. Also it is re-designing a mistrial.          Buy 20  Hold 10  Sell 0

(Analysts’ price target is $203.96)
BUY

His best performer so far this year, up 12%. Well-managed. They replaced Humira with hit drugs and added key companies; pays a 3.2% dividend. 

BUY

Skyrizi continues to work.

PARTIAL BUY

Has no patent cliff. They have great franchises in oncology, immunology and others. Shares are down because bond yields are rising. Dividend pays only 3.7%, below interest rates. That said, good to start a position now given their drugs, including Botox.