Citi Downgrades AbbVie to Neutral, Shares Down 2%

Citi downgraded AbbVie (NYSE:ABBV) from Buy to Neutral and trimmed its price target to $205 from $210, reflecting growing caution around the company's long-term outlook despite its solid near-term performance. As a result, the company’s shares fell more than 2% intra-day today.

While AbbVie has maintained a strong track record of quarterly “beat and raise” results, Citi sees diminishing upside from earnings surprises as investor attention shifts increasingly toward the pipeline and long-term growth drivers.

The firm flagged two key concerns: a relatively thin late-stage pipeline compared to biopharma peers—especially in areas that may not match the scale of its existing immunology portfolio—and elevated exposure to potential U.S. policy changes, including pharmacy benefit manager (PBM) reform and international reference pricing.

Although AbbVie’s flagship drugs, Skyrizi and Rinvoq, face no loss of exclusivity until after 2030, Citi believes these structural risks weaken the company’s perceived defensive positioning in a volatile healthcare environment.

The downgrade signals a more cautious stance on AbbVie’s ability to maintain its premium valuation without clearer progress on pipeline expansion or policy clarity.