AbbVie: Margin Clarity, Dividend Durability Awaited
Summary
- AbbVie's top line is stable post-Humira, with Skyrizi and Rinvoq driving growth, but margin recovery remains uncertain and slow.
- Pipeline and acquisitions support long-term growth, but macro risks like IRA pricing and pharma tariffs could pressure margins further.
- Dividend yield is attractive, but potential recent cash flow weakness raises questions about sustainability if not transitory; capital allocation needs watching.
- Valuation is fair at ~14x EV/EBITDA; I rate ABBV a cautious Hold, awaiting clearer margin and dividend visibility before recommending fresh buys.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.