Analysts awarded AbbVie a buy rating as 2025 EPS is projected to accelerate by over 15%, driven primarily by strong uptake of Skyrizi and Rinvoq. Skyrizi prescriptions rose 40% year-over-year in Q3, with global sales surpassing $3.5 billion, while Rinvoq revenue doubled to more than $2.8 billion. These flagship immunology drugs are expected to offset Humira’s continuing sales decline, with Humira revenue projected to drop by roughly 20% next year. The earnings beat consensus forecasts by 10 cents per share in Q3, reinforcing confidence in AbbVie’s near-term growth trajectory.

Despite trading at a forward P/E above its five-year average, AbbVie’s valuation remains compelling at a 14.4x multiple on FY 2027 earnings forecasts. If the company meets consensus EPS estimates, this multiple implies double-digit returns over the next 18 months. Technical charts show a bullish breakout above a key resistance trendline that held since late 2024, with average daily volume increasing by 25% over the past two months. Combined with a free cash flow yield above 5%, the setup appeals to growth-at-a-reasonable-price investors seeking both momentum and income.

Investors should weigh potential headwinds, including uncertainty around AbbVie’s late-stage pipeline, where only two of six Phase III candidates address high-growth oncology and neurodegeneration markets. Failure to secure approvals could leave a gap once Humira patents expire in key markets. Additionally, AbbVie’s leverage ratio remains elevated after the Allergan acquisition, with net debt at roughly five times EBITDA. While the company generates strong free cash flow to service its debt, any further acquisitions or pricing pressure in immunology could strain its balance sheet.