AbbVie shares continue to trade in a bull market after better than expected Q4 results

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the outdoors, enjoys… read more.
on Feb 13, 2021
  • AbbVie has entered into a collaboration with Caribou Biosciences
  • Total revenue has increased 59.3% in Q4
  • AbbVie expects the combined contribution from RINVOQ and SKYRIZI to double in 2021

AbbVie (NYSE: ABBV) shares weakened last week by more than 3%, and the current price stands around $104. According to analysts, it’s not hard to find reasons to invest in AbbVie, and as long the price is above $90, there is no risk of the trend reversal.

Fundamental analysis: Total revenue has increased 59.3% in Q4

AbbVie is an American biopharmaceutical company that operates as a research-based pharmaceutical manufacturer. AbbVie shares continue to trade above the $100 support level after the company reported better than expected Q4 results.

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AbbVie reported Q4 results this February; total revenue has increased 59.3% Y/Y to $13.86B while Q4 Non-GAAP EPS was $2.92 (beats by $0.07). Total revenue has increased above the expectations (+$160M), and the company provided 2021 adjusted EPS guidance that stands around $12.5.

“We delivered another strong quarter with adjusted earnings per share of $2.92, exceeding the midpoint of our guidance by $0.08. We expect the combined contribution from RINVOQ and SKYRIZI to nearly double in 2021 to approximately $4.6 billion based on their continued strong uptake in RA and psoriasis as well as RINVOQ’s anticipated approvals in PSA, ankylosing spondylitis, and atopic dermatitis later this year,” said Richard Gonzalez, Chairman & Chief Executive Officer of AbbVie.

AbbVie continues to expand its business, and according to the latest news, the company has entered into a collaboration with Caribou Biosciences for the research and development of chimeric antigen receptors. “Under the multi-year agreement, AbbVie will utilize Caribou’s next-generation Cas12a CRISPR hybrid RNA-DNA (chRDNA) genome editing and cell therapy technologies to research and develop two new CAR-T cell therapies directed to specific targets,” AbbVie reported.

The current dividend yield stands around 4.9%, and with a market capitalization of $184B, shares of this company are still undervalued relative to the market. Warren Buffett’s Berkshire Hathaway has bought about 21 million AbbVie shares in Q3, and according to analysts, it’s not hard to find reasons to invest in AbbVie.

Technical analysis: $90 represents a very strong support level

AbbVie shares continue to trade in a bull market, and as long the price is above $90, there is no risk of the trend reversal.

Data source: tradingview.com

The current supports levels are $100 and $90, $110, $115, and $120, represent current resistance levels. If the price jumps above the $110 resistance, it would be a signal to buy shares, and the next price target could be around $115.

If the price falls in the upcoming period, every price in a range from $80- $90 could be a very good opportunity to invest in AbbVie shares.

Summary

AbbVie reported Q4 results this February; total revenue has increased 59.3% Y/Y, and the company expects that the financial results will be even better in 2021. According to analysts, it’s not hard to find reasons to invest in AbbVie, and as long the price is above $90, there is no risk of the trend reversal.

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