HALISTER1: AbbVie Added to Goldman Conviction List On Humira Opportunity

AbbVie Added to Goldman Conviction List On Humira Opportunity

(Bloomberg) -- AbbVie added to conviction buy list by Goldman analyst Jami Rubin, citing Humira’s cash-flow possibilities and the company’s diversified late-stage pipeline.
  • Shares gain 0.8% pre-market
  • Recommends ABBV “unlock trapped value” by separating Humira from the rest of the business and returning cash to holders through a recurring Humira dividend or buyback
  • Says ABBV trades at a discount due to looming competition from biosimilars, but Humira will still generate $60b in cash flow over the next 5 years
  • Raises PT to $80 from $74
  • ABBV has 9 buys, 12 holds, 1 sell, average PT $71: Bloomberg data
  • NOTE: Feb. 17, AbbVie Boosts Share Buyback Program by $5b
    • Feb. 15, AbbVie Leukemia Drug Benefits Are Uncertain, U.K.’s NICE Says

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
ABBV US (AbbVie Inc)
4523 JP (Eisai Co Ltd)

People
Jami Rubin (Goldman Sachs Group Inc/The)

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