Wells Fargo Maintains Overweight on AbbVie (ABBV), Sees Value in Apogee Acquisition

With a 5-Year Average Dividend Growth Rate of 6.33%, AbbVie Inc. (NYSE:ABBV) is included among the Top 11 Dividend Kings to Buy for Safe Dividend Growth.

On June 22, Wells Fargo maintained an Overweight rating on AbbVie Inc. (NYSE:ABBV). It also set a $260 price target on the shares. The firm said AbbVie’s reported bid for Apogee Therapeutics makes sense because Apogee is a strong fit based on its M&A screen. Wells Fargo told investors in a research note that such a transaction would likely be viewed positively for AbbVie shares. The firm also noted that the deal could create pressure on Regeneron due to increased competition.

On June 22, Reuters reported that AbbVie said it would acquire Apogee Therapeutics for $10.9 billion. The deal, AbbVie’s largest buyout in more than five years, is aimed at strengthening its treatment pipeline for inflammatory diseases, including atopic dermatitis and asthma.

The acquisition is one of the biggest biotech deals of the year and reflects the rise in pharmaceutical dealmaking as companies work to expand their portfolios ahead of upcoming patent expirations on major treatments. AbbVie has relied on acquisitions to offset declining demand for its former top-selling drug Humira following biosimilar competition. The company is also preparing for patent expirations of its immunology drugs Skyrizi and Rinvoq.

AbbVie Inc. (NYSE:ABBV) is a global, diversified, research-based biopharmaceutical company. It focuses on the research and development, manufacturing, commercialization, and sale of medicines and therapies.

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