AbbVie Inc. (ABBV): A Bull Case Theory

We came across a bullish thesis on AbbVie Inc. (ABBV) on Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on ABBV. AbbVie Inc. (ABBV)'s share was trading at $198.47 as of May 2^nd. ABBV’s trailing and forward P/E were 84.82 and 16.34 respectively according to Yahoo Finance.

AbbVie (ABBV) delivered a strong Q1 2025 performance that exceeded expectations and was met with a sharp rise in its stock price, driven by upgraded guidance and confidence in its long-term growth outlook. The company’s immunology segment showed robust momentum, with Skyrizi and Rinvoq more than compensating for the anticipated decline in Humira sales. Neuroscience and oncology segments also impressed, led by Elahere, which generated $179 million in global revenue. A key catalyst was the successful conclusion of the MIRASOL trial, where Elahere significantly outperformed chemotherapy in ovarian cancer, reducing the risk of death by 32% and progression or death by 37%. This breakthrough strengthens Elahere’s potential as a new standard of care and paves the way for label expansion. AbbVie continues to reinforce its position as a serial acquirer, highlighted by its acquisition of ImmunoGen for Elahere, Nimble Therapeutics for autoimmune therapies, and a recent licensing deal with Gubra targeting obesity—a high-stakes market dominated by Eli Lilly and Novo Nordisk. With Q1 revenue up 8.4% YoY (9.8% operationally), ABBV has demonstrated strong execution across its pipeline and commercial portfolio. Sustained performance at this level may warrant an upward revision of the current $215 fair value estimate.

AbbVie Inc. (ABBV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held ABBV at the end of the fourth quarter which was 68 in the previous quarter. While we acknowledge the risk and potential of ABBV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.