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Jun 29, 2023

ABBV:NYSE
Investment Type
Large-cap
Risk Level
Action
Rec. Price (US$)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

AbbVie Inc. (AbbVie) (NYSE: ABBV) is a diversified research-based biopharmaceutical company. The Company is engaged in the research and development, manufacturing, commercialization and sale of medicines and therapies. It offers products in various therapeutic categories.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

  • The Stock has corrected by around 16.12% in the past three months, while similarly, the stock price has seen a correction of 18.31% in the past six months.
  • The stock is currently towards the lower side of its 52-week range of USD 168.11 and 52-week low price of USD 130.96. The stock has corrected by around 18.17% after the announcement of it Q1FY23 due to decline bottom line financials for the company. The stock has fallen below both its 200-day SMA and 50-day SMA, which had previously provided solid support for the price. However, following the decline, the price is now close to its next important support, which is now at around USD 115.00-USD 125.00.
  • The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of around 32.06.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

AbbVie (ABBV) has demonstrated a consistent track record of generating enhanced revenue and gross profit figures over the last five years. The company has achieved remarkable growth with a compound annual growth rate (CAGR) of 15.52% in revenue and 14.55% in gross profit. These substantial growth rates are particularly noteworthy considering AbbVie's significant market capitalization. This positive trend in revenue and gross profit indicates that AbbVie has been successful in capturing market share, increasing sales, and effectively managing its cost structure. The company's ability to consistently improve its financial performance over the years highlights its strong market position and effective strategic management. AbbVie's sustained revenue growth demonstrates its ability to meet the demands of the market and successfully introduce new products or expand existing offerings. The substantial increase in gross profit indicates effective cost control measures and efficient operations.

Overall, the consistent growth in revenue and gross profit over the past five years indicates AbbVie's financial stability and successful business performance, positioning the company well for continued success in the future.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~30.54% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~9.05% and ~5.16%, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q1FY23:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

  • The Stock has corrected by around 16.12% in the past three months, while similarly, the stock price has seen a correction of 18.31% in the past six months.
  • The stock is currently towards the lower side of its 52-week range of USD 168.11 and 52-week low price of USD 130.96. The stock has corrected by around 18.17% after the announcement of it Q1FY23 due to decline bottom line financials for the company. The stock has fallen below both its 200-day SMA and 50-day SMA, which had previously provided solid support for the price. However, following the decline, the price is now close to its next important support, which is now at around USD 115.00-USD 125.00.
  • The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of around 32.06.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 28, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.