AbbVie Inc. (ABBV) has been downgraded from Outperform to Peer Perform by Wolfe Research, signaling reduced near-term conviction despite maintaining a neutral stance. The move reflects cautious outlooks on revenue growth and pipeline momentum.
- AbbVie (ABBV) downgraded from Outperform to Peer Perform by Wolfe Research
- 2026 revenue growth forecast revised to 3.5% YoY, down from prior 5%+ expectations
- Humira patent expiration pressures near-term sales in key markets
- risankizumab and oncology pipeline delays cited as growth headwinds
- ABBV’s 2025 cash flow reached $13.2 billion; dividend payout ratio at 58%
- Sector impact may favor peers like Eli Lilly (LLY) and Bristol-Myers Squibb (BMY)
AbbVie Inc. (ABBV) has been downgraded to Peer Perform from Outperform by Wolfe Research, marking a notable shift in institutional sentiment. The change comes amid growing scrutiny over the company’s ability to sustain top-line growth following the impending loss of exclusivity for its flagship drug, Humira, in key markets. Analysts cited elevated competition and slower-than-expected adoption of new pipeline assets as key concerns. The downgrade reflects a recalibration of expectations for AbbVie’s 2026 revenue growth, now projected to rise by approximately 3.5% year-over-year, down from prior estimates of 5% or higher. This deceleration is attributed to weaker-than-anticipated performance from risankizumab in inflammatory bowel disease and delayed regulatory decisions on newer oncology candidates. Despite a strong cash flow generation of $13.2 billion in 2025 and a dividend payout ratio of 58%, the firm's strategic execution remains under pressure. The action affects investor positioning in ABBV, with share price movements potentially influenced by the revised rating. Sector-wide, peers such as Eli Lilly (LLY) and Bristol-Myers Squibb (BMY) may benefit from relative outperformance if AbbVie’s momentum stalls. Institutional portfolios with significant exposure to ABBV could undergo rebalancing in response to the change. Wolfe Research maintains a neutral stance on the stock, indicating no immediate sell recommendation, but the downgrade underscores a broader sentiment shift toward caution in the biopharmaceutical sector amid patent cliffs and rising R&D costs.