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    A Look at AbbVie's Valuation Following Strong Earnings, Dividend Hike, and Pipeline Progress

    Simply Wall St·11/02/2025 17:29:28
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    AbbVie (NYSE:ABBV) gave investors plenty to talk about this week, reporting quarterly earnings that exceeded forecasts and announcing a 5.5% increase to its dividend. The company also revealed positive regulatory updates, key clinical advances, and a string of strategic acquisitions.

    See our latest analysis for AbbVie.

    AbbVie’s stock has seen some ups and downs lately, sliding 6.8% over the past month but still maintaining positive momentum for the year thanks to robust quarterly results, a growing pipeline, and a 21.5% year-to-date share price return. Its total shareholder return over five years stands at an impressive 185%, reinforcing AbbVie’s track record of rewarding long-term investors.

    If AbbVie’s mix of innovation and shareholder returns has you curious about what else is making waves, now’s the perfect time to explore other leading healthcare stocks. See the full list for free.

    With shares still trading at a notable discount to analyst price targets and up over 21% this year, the central question is whether AbbVie is undervalued or if the market has already priced in its next wave of growth opportunities.

    Most Popular Narrative: 8.2% Undervalued

    With AbbVie's narrative fair value topping its recent closing price, investor sentiment is pointing to upside. The stage is set for a bold growth thesis to take hold.

    AbbVie's diversified and expanding late-stage and early-stage pipeline, coupled with consistent business development activity (e.g., Capstan in vivo CAR-T, Gubra amylin analog for obesity, next-gen siRNA platforms), positions the company to capitalize on the increasing adoption of biologics and specialty pharmaceuticals. This can reinforce premium pricing and protect net margins.

    Read the complete narrative.

    Want to see what makes analysts wager on continued margin power? There is a bold earnings growth assumption and a profit multiple that amplifies the upside. Curious how these projections shape such a confident price target? The full narrative holds all the revealing details.

    Result: Fair Value of $237.48 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, rising R&D costs and heavy reliance on a few key drugs could quickly shift sentiment if there are pipeline setbacks or tougher competition emerges.

    Find out about the key risks to this AbbVie narrative.

    Build Your Own AbbVie Narrative

    If you'd rather chart your own course or want to dive deeper into the numbers yourself, you can quickly build a personal narrative in just a few minutes. Do it your way

    A great starting point for your AbbVie research is our analysis highlighting 2 key rewards and 6 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.