RBC Capital raised its price target on Abbvie (NYSE: ABBV) to $330 from $280 on Monday while maintaining an Outperform rating.
The firm cited quarterly results showing 10% year-over-year sales growth. Skyrizi sales rose 23% year-over-year and Rinvoq sales climbed 24% year-over-year, with the immunology portfolio driving performance.
RBC analyst Trung Huynh stated the quarterly results validate a durable growth trajectory. The analyst said the market underappreciates the durability of one of pharma's highest-growth franchises and the margin leverage as immunology scales.
RBC Capital raised its target multiple to 20 times from 18 times, citing strong execution, a clean patent runway to 2035 and beyond, an improving pipeline, and expanding market multiples. The analyst said the new price target better captures Abbvie's premium growth and de-risked profile.
The stock has surged 45% over the past six months and currently trades at $294.89.
Other analyst firms also raised price targets following third-quarter results. Canaccord increased its target to $338, Guggenheim raised its target to $322, Wells Fargo set a new target of $340, and UBS raised its target to $295.