Freedom analysts raised their target price for AbbVie (ABBV) shares from $285 to $315 and maintained a “Buy” rating. From the $286 price used in the review dated November 4, the upside potential is about 10.1%. The experts view the Q3 results positively: key drugs continue to ramp up sales, the company improved its full-year guidance, and new approvals expand growth opportunities.
Company at a glance
AbbVie is an international biopharmaceutical company that develops treatments for immuno-inflammatory, oncological, neurological and other diseases. Its portfolio also includes aesthetic medicine products.
Two drugs generate almost half of revenue
The main argument in favor of the stock, analysts say, is resilient demand for Skyrizi and Rinvoq. These drugs are used for immuno-inflammatory diseases and remain AbbVie’s primary source of growth.
In Q3, Skyrizi sales rose 22.7% year over year to $5.776 bn, and Rinvoq sales increased 23.9% to $2.706 bn. Both results exceeded Freedom’s forecasts. The company’s total revenue grew 10.3% to $17.40 bn. Sales growth was driven by expanding demand, while discounts and rebates continued to restrain revenue. Management expects favorable access to the drugs through insurance programs to persist in 2027, but forecasts further increases in discounts.
At the same time, the success of the two products creates concentration risk: Skyrizi and Rinvoq already account for about 49% of AbbVie’s quarterly revenue. A slowdown in their sales could noticeably affect the group’s results.
New approvals expand the market
Additional support for Skyrizi may come from the Crohn’s disease induction regimen with subcutaneous administration approved in October. It allows patients to start therapy using an injector instead of intravenous infusions.
Analysts consider ease of use an additional advantage of the drug. However, management expects a more meaningful acceleration in market share gains in 2027, after insurance coverage is expanded. The study results for the new regimen also should not be viewed as evidence of superiority over intravenous administration: no head-to-head comparison was conducted. Another important event was the FDA’s September approval of tavapadon under the JUVMO brand for treating Parkinson’s disease. It is taken once a day—on its own or together with levodopa.
Together with the development of VYALEV, the new drug should strengthen AbbVie’s position in Parkinson’s disease treatment. The company aims to bring the segment’s total annual revenue to $4–5 bn. At the same time, JUVMO’s commercial rollout will be gradual and depends, among other things, on reimbursement terms for the therapy cost.
Neurology is growing; aesthetic medicine remains under pressure
The second key source of growth was the neurology and psychiatry segment: its revenue increased 19.4% to $3.389 bn. Momentum was supported by migraine therapies, Botox Therapeutic, and Vraylar. The oncology segment returned to slight growth—up 0.8% to $1.696 bn. Higher sales of Venclexta, Elahere and Epkinly offset much of the decline in Imbruvica.
In aesthetic medicine, sales fell 1.4% to $1.176 bn amid continued weakness in Juvederm. Management notes early signs of market stabilization, but the durability of the demand recovery still needs to be confirmed.
Earnings beat expectations, but the structure of improvement matters
Adjusted AbbVie earnings per share were $3.82 versus the consensus forecast of $3.73. Adjusted gross margin increased from 83.9% to 85.1%.
Analysts point out that the improvement in operating profitability is not only tied to business development. Expense for acquired in-process research and development and milestone payments fell from $2.68 bn to $216 mn. If these expenses are excluded from both periods, the operating margin is about 49.9% versus 47.9% a year earlier. This indicates an improvement of about two percentage points on a comparable basis.
What changed in Freedom’s forecasts
AbbVie raised its 2026 revenue forecast by another $200 mn, to roughly $67.8 bn. Expectations improved mainly thanks to the neurology and oncology segments. The adjusted EPS range was raised from the pre-report $13.76–13.96 to $13.95–13.99. The midpoint of the new range matches the guidance from the Q2 report: operational improvements offset additional spending on acquired development programs.
Freedom raised its own financial forecasts and business valuation. Experts became more confident in the sustainability of mid-term growth due to demand for Skyrizi and Rinvoq, expansion of their use cases, and approval of JUVMO. They also cite capital rotation into defensive sectors, including healthcare, as an additional argument.
Partnerships lay the groundwork for new drugs
AbbVie is also expanding its research portfolio through collaboration with biotech companies. In May 2025, it entered into an agreement with ADARx Pharmaceuticals to develop drugs based on small interfering RNA—siRNA. This technology makes it possible to suppress the activity of certain genes without irreversibly altering DNA.
ADARx received an upfront payment of $335 mn. The contract provides for additional payments for extension and execution of options, as well as up to $7.45 bn upon achievement of specified milestones. These amounts are contingent and depend on further development results, regulatory decisions, and commercial success.
Such partnerships expand AbbVie’s long-term opportunities. Near-term results, in Freedom’s view, will still be determined primarily by the performance of Skyrizi and Rinvoq, the development of the neurology portfolio, and stabilization of weaker segments.
This is not an individual investment recommendation.