Morgan Stanley reaffirms a Buy rating on AbbVie (ABBV.US): Low volatility + double performance support, target price of $250.

AbbVie, Inc. (ABBV.US) recently received continued positive feedback from Morgan Stanley analyst Terrence Flynn, who reiterated a "buy" rating on the pharmaceutical giant and maintained a target price of $250. As a global leader in the biopharmaceutical industry, AbbVie delivered impressive results in the first quarter of the 2025 fiscal year: adjusted diluted earnings per share reached $2.46, a 6.5% year-on-year increase; net revenue exceeded $13.343 billion, with a reported growth rate of 8.4%, or 9.8% when calculated on an operational basis. These numbers further support the market's optimistic expectations for the company. AbbVie is set to announce its second quarter 2025 financial results on Thursday, July 31, 2025, after the market closes. Analysts predict that revenue for the quarter will reach $14.9667 billion and earnings per share will be $1.527. In terms of business composition, AbbVie's immunotherapy segment has shown particularly strong performance. Sales of the two flagship immunotherapies, Skyrizi and Rinvoq, have roughly increased to $3.43 billion and $1.72 billion respectively, with year-on-year increases of approximately 70% and 57%, making them the core drivers of the company's performance growth. In addition, the company is also focused on early-stage business development opportunities in oncology and neuroscience to drive growth in the years to come. Regarding their research pipeline, AbbVie has also made significant progress. At the 2025 AACR Annual Meeting, the company showcased early-stage research pipeline and scientific progress in oncology, including the novel STEAP1/PSMA bispecific antibody-drug conjugate (ADC) ABBV-969 and the novel CCR8-targeted antibody ABBV-514. The development of these innovative drugs not only lays a solid foundation for the company's future growth but also brings new treatment hope to patients worldwide. However, AbbVie also faces some challenges. The tariff policies and drug pricing proposals of the Trump administration may have a certain impact on the company's business. CEO Robert Michael stated during the earnings conference call that AbbVie, relying on its U.S. manufacturing base, is capable of withstanding the impact of such policies and plans to further expand U.S. production investments, with a $10 billion investment over the next decade in domestic manufacturing specifically to support business development, particularly in the field of obesity treatment. In the competitive landscape of the top ten global pharmaceutical companies, AbbVie remains at the forefront but still faces fierce competition from companies like Johnson & Johnson (JNJ.US), Novartis AG Sponsored ADR (NVS.US), and Merck & Co., Inc. (MRK.US). However, with its innovative strengths in immunotherapy and market positioning, as well as its continued investment in new drug development, AbbVie is expected to maintain its leading position in the future.