AbbVie Inc.

ABBV· NYQ· Healthcare· Drug Manufacturers - General

$266.54

+0.83% Delayed prices.

Should you buy or sell AbbVie Inc. (ABBV)?

From the Sep 26, 2026 report · Read the full report

Hold
SellBuy

Team rating

Hold
Date
Sep 26, 2026
Price
$264.34
Price target
$278.61

ABBV is trading at $264.34 with strong technical support (price above 50SMA $257.05 and 200SMA $228.40), sustainable dividend coverage (FCF covers 99% of dividends), and attractive forward valuation (Forward PE 16.26 vs industry average 20-25). The temporary TTM PE (74.46) is offset by 5.5x growth potential and PEG ratio of 0.54.

Bull case
  • Forward PE of 16.26 indicates undervaluation relative to growth (PEG 0.54).
  • FCF ($3.11B Q2 2026) exceeds dividends (99% coverage).
  • Technical indicators confirm a sustainable uptrend (current price 8.2% above 50SMA).
  • Strong operating cash flow ($3.44B Q2 2026) mitigates negative balance sheet metrics.
Bear case
  • Negative equity (Common Stock Equity: -$5.93B) and negative working capital (-$7.97B).
  • Current ratio of 0.81 (below 1.0) signals potential short-term liquidity pressure.
  • TTM PE of 74.46 is historically high due to temporary earnings headwinds.
Risks
  • Patent cliff risks from Imbruvica decline, mitigated by new oncology therapies.
  • Inflation-driven cost increases (CPI +3.05%) may squeeze margins.
  • Competitive pressure from Eli Lilly (LLY) with 49.6% revenue growth.

The team's verdict

ABBV is trading at $264.34 with strong technical support (price above 50SMA $257.05 and 200SMA $228.40), sustainable dividend coverage (FCF covers 99% of dividends), and attractive forward valuation (Forward PE 16.26 vs industry average 20-25). The temporary TTM PE (74.46) is offset by 5.5x growth potential and PEG ratio of 0.54. While balance sheet concerns exist, strong operating cash flow ($3.44B Q2 2026) and interest coverage (6.7x) mitigate these risks. The company's strategic focus on immunology and oncology pipelines, supported by AI-driven R&D partnerships, provides a foundation for long-term growth. Given the current market conditions and the company's fundamentals, a HOLD rating is appropriate.

Frequently asked questions

Is it a good time to buy ABBV?

Our AI team rates AbbVie Inc. (ABBV) hold in its analysis of Sep 26, 2026. This page sums up the bull and bear arguments behind that call.

What is the main reason to buy ABBV?

Forward PE of 16.26 indicates undervaluation relative to growth (PEG 0.54).

Sources: Yahoo Finance (prices, financial statements and analysts' estimates) and the U.S. Treasury (10-year yield). Indicators and valuation are computed without AI.

AI-generated informational content. Not financial advice or a personalised investment recommendation. Investing involves risk, including loss of capital.

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