Key Takeaways
- RBC Capital Markets launched coverage on AbbVie (ABBV) with an outperform designation and $260 price objective, suggesting approximately 14% potential gains.
- RBC analyst Trung Huynh believes market skepticism around AbbVie’s expansion trajectory is misplaced, highlighting Skyrizi and Rinvoq as central growth engines.
- The pharmaceutical giant faces no immediate patent expiration challenges and doesn’t require acquisitions to fuel growth, according to RBC’s assessment.
- Trading below 16x forward earnings, ABBV’s valuation resembles companies with patent cliff exposure rather than high-growth pharmaceutical leaders like Eli Lilly.
- The company separately unveiled plans for a $380 million investment in two API manufacturing plants in North Chicago, expecting to add 300 jobs.
On February 25, 2026, RBC Capital Markets launched its coverage of AbbVie (ABBV), assigning an outperform rating alongside a $260 price objective.
Using AbbVie’s February 24 closing price as a baseline, RBC’s target suggests approximately 14% appreciation potential.
RBC analyst Trung Huynh challenged the negative sentiment surrounding the stock. He countered claims that “the beat-and-raise story is over,” arguing these concerns are misguided.
Huynh emphasized Skyrizi and Rinvoq as foundational elements of his bullish case. He characterized both therapies as being in “early indication expansion” phases, suggesting more growth potential than current market pricing reflects.
AbbVie faces no immediate patent expiration threats across its primary drug portfolio. This represents a significant competitive advantage in an industry where patent cliffs can eliminate billions in annual sales.
Huynh emphasized that AbbVie isn’t under pressure to pursue acquisitions. This absence of M&A necessity translates to reduced balance sheet risk and greater earnings visibility.
Regarding valuation metrics, Huynh drew a striking comparison. Trading below 16x forward earnings, ABBV’s multiple mirrors that of Merck — a company confronting patent expiration challenges — rather than Eli Lilly, which commands a premium growth valuation.
This valuation gap exists despite AbbVie generating approximately 17% EPS expansion, significantly outpacing the roughly 6% growth rate of comparable pharmaceutical companies. Huynh characterized AbbVie’s PEG ratio as substantially more compelling than Lilly’s.
Multiple Catalysts Expected Throughout 2026
Huynh outlined numerous potential value drivers on the near-term horizon. Rinvoq has three anticipated catalyst events scheduled for this year, with Skyrizi adding two more.
The FDA is scheduled to deliver a regulatory decision on tavapadon for Parkinson’s disease treatment. This approval decision represents a significant near-term catalyst for shareholders.
Additionally, AbbVie will present Phase 1 clinical results for ABBV-295, a long-acting amylin analogue designed for obesity treatment. While the obesity therapeutics market has become increasingly competitive, promising early-stage data could significantly impact valuation.
Phase 3 clinical data for lutikizumab in hidradenitis suppurativa treatment represents another upcoming data release.
Strategic Manufacturing Investment Strengthens Pipeline Infrastructure
In a separate announcement, AbbVie revealed plans for a $380 million capital investment to construct two active pharmaceutical ingredient (API) manufacturing facilities at its North Chicago, Illinois headquarters.
Construction is scheduled to commence in spring 2026, with both manufacturing plants projected to reach full operational capacity by 2029.
These facilities will concentrate on producing next-generation neuroscience and obesity therapeutics, incorporating cutting-edge manufacturing technologies and artificial intelligence capabilities.
The company intends to create 300 new positions supporting this expansion, spanning engineering, scientific research, manufacturing operations, and laboratory functions.
CEO Robert A. Michael characterized the investment as “further progress” toward the company’s previously disclosed $100 billion commitment to U.S.-based research, development, and capital expenditure over the coming decade.
This announcement follows a September 2025 groundbreaking ceremony for an additional chemical synthesis facility, also designed to reshore API manufacturing to domestic operations.
RBC’s $260 price objective represents the most recent Wall Street analyst recommendation on the stock, published February 25, 2026.
