By Peet Serfontein & Khumbulani Kunene
We initiate a long position with a target price of $216.00 and a stop-loss of $174.00 (Risk/reward ratio 1:2.6).
AbbVie Inc. is a research-based biopharmaceutical company that discovers and develops medicines and therapies that solve health issues across immunology, oncology, aesthetics, neuroscience, and eye care. AbbVie uses its expertise and unique approach to innovation to develop and market advanced therapies that address some of the world's most complex and severe diseases, including some of the most complicated and difficult to treat cancers.
ABBV originally spun off from Abbott Laboratories in 2013 and has since grown into a major player in the global pharmaceutical industry, largely driven by the success of its blockbuster rheumatoid arthritis drug Humira. AbbVie's products are sold globally directly to wholesalers, distributors, government agencies, healthcare facilities, specialty pharmacies, and independent retailers from AbbVie-owned distribution centres and public warehouses.
Technically, the price is in an upward sloping inclining channel pattern that presents a promising investment opportunity for the stock (see the black parallel trendlines on the main chart). This pattern can provide bullish support for the stock by highlighting a well-established and sustained trend of higher highs and higher lows.
Consistent positive monthly returns from May to September also supports the bullish case for the stock (see the insert on the main chart). This pattern highlights periods of consistent strong risk-adjustment returns. Sustained intervals above the neutral line (Sharpe ratio greater than 1) highlight that investors have previously been rewarded for taking on risk in the stock. The recent upward movement in the Sharpe ratio reinforces the bullish case.
Muted downside price momentum per the MACD histogram, as well as the sideways trajectory of the on-balance volume (OBV) indicator supports our bullish view.
| Share Information | |
|---|---|
| Share Code | ABBV |
| Industry | Pharmaceuticals, Biotechnology |
| Market Capital (USD) | 328 billion |
| One Year Total Return | 23.94% |
| Return Year-to-Date | 6.49% |
| Current Price (USD) | 185.72 |
| 52 Week High (USD) | 218.66 |
| 52 Week Low (USD) | 153.58 |
| Financial Year End | December |
| The price is approaching its 200-day simple moving average (SMA) from below. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 10.12 | 12.21 | 13.92 | 15.43 |
| Growth (%) | 20.64 | 13.97 | 10.87 | |
| Dividend Per Share (USD) | 6.20 | 6.56 | 6.88 | 7.21 |
| Growth (%) | 5.76 | 4.87 | 4.80 | |
| Forward PE (times) | 14.39 | 12.78 | 12.04 | |
| Forward Dividend Yield (%) | 3.53 | 3.70 | 3.88 | |
| Strong double-digit growth in earnings is expected in the medium term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | SW US - Buy (Continue to hold) |
CTAS - Buy (Continue to hold) |
PANW US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 39.56 | 205.84 | 173.55 |
| Current | 44.39 | 225.88 | 187.46 |
| Movement | +12.2% | +9.7% | +8.0% |
|
A trough in the Elliott wave theory remains of interest. Remains below its 200-day SMA. Fading downside price momentum is supportive.
Our profit target remains at $49.00 with a trailing stop-loss at $41.00. Exit the trade around 20 August 2025. |
A bullish pennant pattern continues to attract attention. Remains above its 200-day SMA. Strong upside price momentum is supportive.
Our profit target remains at $241.00 with a trailing stop-loss at $212.00. Exit the trade by 25 June 2025. |
The recent trough in the stock's price continues to attract attention. It remains positioned above its 200-day SMA. Upside price momentum is supportive.
Our profit target remains at $228.00 with a trailing stop-loss at $164.00. Exit the trade around 25 June 2025. |
| Share Name and Position | LULU US - Buy (Continue to hold) |
DECK US - Buy (Continue to hold) |
MSI US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 310.61 | 109.15 | 422.93 |
| Current | 321.20 | 108.96 | 420.44 |
| Movement | +3.4% | -0.2% | -0.6% |
|
A price in a developing Megaphone pattern remains of interest. Continue to test its 200-day SMA. Fading downside price momentum is supportive.
Our profit target remains at $388.00 with a trailing stop-loss at $291.00. Exit the trade by 13 August 2025. |
A trough that is developing according to the Elliott wave theory remains of interest. Remains below its 200-day SMA. Fading downside price momentum is supportive.
Our profit target remains at $144.00 with a trailing stop-loss at $115.00. Exit the trade by 24 June 2025. |
A price at the start of wave 5 out of the Elliott wave price action remains of interest. Remains below its 200-day simple moving average. Fading downside price momentum is supportive.
Our profit target remains at $476.00 with a trailing stop-loss at $402.00. Exit the trade around 13 August 2025. |
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