AbbVie (ABBV) Stock: What RBC’s New Outperform Rating Means for Investors

TLDR

• RBC Capital Markets initiated coverage of AbbVie (ABBV) with an outperform rating and a $260 price target, implying ~14% upside.
• Analyst Trung Huynh argues concerns about AbbVie’s growth story are overblown, pointing to Skyrizi and Rinvoq as key drivers.
• AbbVie has no near-term loss of exclusivity (LOE) issues and no need for M&A, per RBC.
• At under 16x earnings, ABBV trades closer to pharma peers facing LOEs than high-growth names like Eli Lilly.
• AbbVie also announced a $380 million investment to build two new API manufacturing facilities in North Chicago, with 300 new hires planned.

RBC Capital Markets initiated coverage of AbbVie (ABBV) on February 25, 2026, with an outperform rating and a $260 price target.

AbbVie Inc., ABBV

Based on AbbVie’s closing price on February 24, that target represents roughly 14% upside.

AbbVie also has no near-term loss of exclusivity issues for its current drug lineup. That’s a meaningful edge in a sector where patent cliffs can wipe out billions in revenue overnight.

Huynh also noted that AbbVie doesn’t need to go shopping. No M&A pressure means less balance sheet risk and more predictability for investors.

On valuation, he made a pointed comparison. At under 16x earnings, ABBV is trading more like Merck — a company facing LOE headwinds — than Eli Lilly, a high-growth name.

That’s despite AbbVie delivering roughly 17% EPS growth, compared to about 6% for peers. Huynh described the PEG valuation as more attractive than Lilly’s.

Catalysts Ahead in 2026

Huynh laid out a busy calendar of potential catalysts. Rinvoq has three expected catalysts this year, while Skyrizi has two.

The FDA is also expected to rule on tavapadon for Parkinson’s disease. That decision could be a meaningful near-term event for the stock.

AbbVie is also set to release Phase 1 data for ABBV-295, a long-acting amylin analogue targeting obesity. Obesity drug development is a crowded space, but early data could still move the needle.

Lutikizumab Phase 3 data in hidradenitis suppurativa is another readout on the horizon.

Manufacturing Expansion Adds Long-Term Depth

Separately, AbbVie announced a $380 million investment to build two new API manufacturing facilities at its North Chicago, Illinois campus.

Construction is set to begin in spring 2026, with both plants expected to be operational by 2029.

The facilities will focus on next-generation neuroscience and obesity medications, using advanced manufacturing tech and artificial intelligence.

AbbVie plans to hire 300 employees to support the expansion, covering roles in engineering, science, manufacturing operations, and lab work.

CEO Robert A. Michael called it “further progress” against the company’s previously announced $100 billion commitment to U.S. R&D and capital investment over the next decade.

This follows a September 2025 groundbreaking for a separate chemical synthesis facility also aimed at returning API production to the U.S.

RBC’s $260 price target stands as the most recent analyst call on the stock, issued February 25, 2026.

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