AbbVie Inc. (ABBV) shares climbed 0.7% to $224.83 during Tuesday afternoon trading, approaching the session's peak. The stock moved within a tight range between $223.00 and $225.78 as investors balanced company-specific developments with anticipation for key economic indicators.
Analyst Action and Market Context
BNP Paribas Exane increased its price target on AbbVie to $213 from $203, while maintaining a "neutral" rating on the pharmaceutical giant. This adjustment follows the company's recent financial forecast, which projected 2026 adjusted earnings per share between $14.37 and $14.57. However, shares faced pressure last week after sales of its immunology drug Rinvoq fell short of expectations.
Analysts have highlighted ongoing concerns about competitive pressures facing AbbVie's core immunology franchise, including challenges from Johnson & Johnson's Tremfya. The company's CFO, Scott Reents, has also noted "low-single-digit pricing headwinds" for Rinvoq and Skyrizi.
Macroeconomic Overhang
The broader market presented a mixed picture, with the Dow Jones Industrial Average reaching a record high while the S&P 500 remained largely flat. Traders digested corporate earnings and a weaker-than-expected retail sales report, which suggested potential softening in economic strength.
Attention now turns to delayed U.S. economic data, with the January payrolls report scheduled for Wednesday, February 11, and the Consumer Price Index (CPI) report due Friday, February 13. Both releases, delayed by a brief government shutdown, are expected to provide crucial signals regarding the Federal Reserve's interest rate path.
For dividend-heavy sectors like pharmaceuticals, interest rate expectations create additional volatility. Higher yields can reduce the appeal of income-generating stocks, while softer economic data typically has the opposite effect, creating sensitivity to macroeconomic headlines even during periods of limited company-specific news.
The new price target from BNP Paribas Exane remains below AbbVie's current trading level, suggesting much of the near-term optimism may already be reflected in the stock price. This leaves limited room for operational missteps and increases sensitivity to any new developments regarding drug demand and pricing dynamics.
