AbbVie (ABBV) Q3 Earnings Preview: Alzheimer’s Deal, Technical Outlook, and Analyst Expectations
Get ready for a busy Wednesday as AbbVie Inc. (ABBV) prepares to unveil its third-quarter earnings report. Wall Street is anticipating a strong showing, with analysts projecting earnings per share (EPS) of $2.92 and revenues of $14.28 billion. The company will be reporting before the market opens, giving investors a chance to digest the results before the trading day begins.
In the lead-up to the earnings report, AbbVie made a significant move to strengthen its position in the Alzheimer’s research landscape. On Monday, the company announced the acquisition of Aliada Therapeutics for a hefty $1.4 billion. This strategic move brings Aliada’s innovative approach to delivering treatments directly to the brain, with its lead drug candidate, ALIA-1758, showing promise for Alzheimer’s treatment. This drug, currently in early testing stages, targets amyloid beta plaques, which are associated with the disease. By acquiring Aliada, AbbVie aims to accelerate the development of therapies for Alzheimer’s and other neurological conditions.
Investors seem to be pleased with AbbVie’s acquisition strategy, as the company’s shares closed 1% higher on the news. The stock has had a strong run over the past year, rising 33.68% and delivering an impressive 18.68% year-to-date (YTD) return. Now, with the upcoming earnings report, investors are eager to see how the company’s performance translates into future stock movement.
AbbVie Stock Technical Setup Ahead of Q3 Earnings
Looking at the technical picture, AbbVie’s stock exhibits a mixed but overall bearish trend. The stock is trading below its five, 20, and 50-day exponential moving averages, suggesting continued downward pressure. However, a closer look reveals a glimmer of hope. The current share price of $189.57 sits just above its eight-day simple moving average (SMA) of $188.60, signaling a potential short-term bullish turnaround.
The 20-day and 50-day SMAs, at $191.51 and $193.71 respectively, remain above the current price, reinforcing a bearish stance in the medium term. However, the stock’s position above the 200-day SMA of $177.29 suggests a longer-term bullish outlook. This suggests that while the stock might experience some volatility in the near future, its long-term growth trajectory remains positive.
The Moving Average Convergence Divergence (MACD) indicator currently sits at a negative 1.35, aligning with the short-term bearish trend. However, the Relative Strength Index (RSI) at 45.07 indicates a neutral position for AbbVie stock. It’s worth noting that a decline of the RSI below 30 could signal a potential for a reversal. Overall, while the technical outlook leans bearish, signs of buying pressure hint at a possible bullish turn ahead.
Analysts See Over 10% Upside for AbbVie Stock
Wall Street analysts remain optimistic about AbbVie’s prospects. The consensus analyst rating on the stock is a Buy, with a price target of $185.11. Recent ratings from Citigroup, BofA Securities, and BMO Capital have given AbbVie an average price target of $210, implying a potential upside of 10.58%. This suggests that analysts believe AbbVie is well-positioned for continued growth and value creation.
ABBV Price Action
As of Tuesday, AbbVie stock is down 0.12% to $189.45. Investors will be closely watching the stock’s performance in the coming days as the earnings report approaches. The market reaction to the results could provide valuable insights into the company’s future direction and investor sentiment.
