The pullback in AbbVie Inc. (ABBV) is overdone.
Shortly after the US FDA mandated new heart safety and cancer warnings for the company’s immunology drug Rinvoq, and other companies JAK inhibitors, ABBV plummeted from $120 to $106. However, it looks like the bottom may be in, with oversold RSI, MACD, and Williams’ %R.
BMO analyst Gary Nachman also says its undervalued, with an outperform rating on the stock and a $133 price target. “Our sensitivity analysis to already conservative Rinvoq forecasts suggests the selloff has been overdone,” he said, as quoted by The Street, adding “ABBV is well positioned to successfully manage through Humira’s U.S. loss of exclusivity starting in January 2023, with investors appropriately cautious and expectations reasonably low.”
The pullback may be a great opportunity to buy.
In addition, ABBV just declared a quarterly dividend of $1.30 per share, or $5.2 annualized. The dividend will be payable on November 15, 2021, to stockholders of record on October 15, 2021.