BofA Lifts Price Targets on AbbVie and J&J, Sees Stronger Growth Ahead

Bank of America (BofA) has raised its price targets on two pharmaceutical giants, AbbVie and Johnson & Johnson. The investment firm increased its target for AbbVie to $289 from $282, maintaining a Buy rating. BofA also lifted its Johnson & Johnson price target to $278 from $263 but kept the stock's Neutral rating.

The analysts' conviction level differs sharply between the two companies, with AbbVie benefiting from a favorable loss of exclusivity profile and a strengthened late-stage pipeline due to recent M&A activity. The pending Apogee acquisition adds an anti-IL-13 candidate for atopic dermatitis to AbbVie's portfolio.

J&J's price target increase was driven by a physician dermatology survey that boosted the peak psoriasis sales forecast for Icotyde to $4.5 billion on 18% share, up from $2.4 billion on 10% share. The company reported over 18,000 prescriptions written for Icotyde in its second-quarter call.

AbbVie's revenue grew 10.2% to $16.99 billion in the second quarter, with adjusted EPS beating consensus estimates. Skyrizi and Rinvoq sales rose by 24.4% and 24.5%, respectively, offsetting a decline in Humira sales.