Citigroup has shifted AbbVie from Buy to Neutral, setting a new price target of \$205. The downgrade signals increased concern over the company’s drug pipeline and its vulnerability to shifts in U.S. healthcare policy.
🔬 While AbbVie remains a pharmaceutical heavyweight with top-performing products like Skyrizi and Rinvoq, its current late-stage pipeline lacks the depth seen in competitors. That limited visibility into future growth is giving analysts pause, especially in a sector that’s increasingly sensitive to regulatory changes.
🏛️ AbbVie’s high exposure to U.S. revenues further amplifies the risk tied to potential drug pricing reforms, including efforts to revamp how pharmacy benefit managers operate or expand international reference pricing models.
đź’µ On the dividend side, AbbVie offers an enticing yield of 3.6%. However, the payout ratio has climbed to over 270%, an elevated level that raises red flags about the long-term sustainability of shareholder payouts should earnings momentum wane.
With a strong brand and solid current cash flows, AbbVie isn’t out of favor—just facing stiffer scrutiny as the next chapter of growth looks less certain.