Abbvie: Société Générale upgrades stock, raising target.
(CercleFinance.com) - Société Générale (SG) has upgraded its former hold rating on the US biopharmaceutical group AbbVie's share to buy.
Alongside this upgrade, it has raised its 12-month target price on the stock from 65 dollars to 95 dollars (+46.1%).
Indeed, SG points out, AbbVie was tending to get rid of its assets to pay its shareholders, while trying to diversify. In addition, last year the group suffered from the arrival of competing biosimilar drugs to its "blockbuster" Humira, which is particularly intended to treat arthritis and Crohn's disease and ensured the bulk of its sales. This was far from beneficial for the share.
However, SG has changed its mind and is now much more positive on the share. The main arguments, on the one hand, are that competition faced by Humira is not expected to be as intense as that initially feared - both in the US and elsewhere. Indeed, care protocols could limit changes in treatment.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Alongside this upgrade, it has raised its 12-month target price on the stock from 65 dollars to 95 dollars (+46.1%).
Indeed, SG points out, AbbVie was tending to get rid of its assets to pay its shareholders, while trying to diversify. In addition, last year the group suffered from the arrival of competing biosimilar drugs to its "blockbuster" Humira, which is particularly intended to treat arthritis and Crohn's disease and ensured the bulk of its sales. This was far from beneficial for the share.
However, SG has changed its mind and is now much more positive on the share. The main arguments, on the one hand, are that competition faced by Humira is not expected to be as intense as that initially feared - both in the US and elsewhere. Indeed, care protocols could limit changes in treatment.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.