AbbVie Inc. ABBV is set to release its third-quarter earnings report on Wednesday. Analysts predict earnings per share (EPS) of $2.92 along with revenues of $14.28 billion, with the announcement coming before market hours.

In a strategic move prior to its earnings release, AbbVie announced the $1.4 billion acquisition of Aliada Therapeutics on Monday, enhancing its Alzheimer’s research initiatives.

Aliada brings a novel method for delivering treatments straight to the brain, with its leading drug candidate, ALIA-1758, showing potential for Alzheimer’s disease. Although still in the early testing phase, this drug targets amyloid beta plaques linked to Alzheimer’s, potentially strengthening AbbVie’s neuroscience portfolio.

By acquiring Aliada, AbbVie intends to expedite therapies for Alzheimer’s and various neurological disorders. Investors reacted positively to the news, pushing AbbVie’s shares up by 1%.

In the past year, AbbVie’s stock has gained 33.68%, with an 18.68% increase year-to-date.

Next, we’ll examine AbbVie’s stock performance and how it aligns with Wall Street estimates.

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Analyzing AbbVie’s Stock Before Q3 Earnings

Currently, AbbVie’s technical indicators demonstrate a mixed outlook with an overall bearish trend.

Chart created using Benzinga Pro

The stock currently trades below its five, 20, and 50-day exponential moving averages, indicating consistent downward pressure. However, AbbVie’s share price of $189.57 sits just above its eight-day simple moving average (SMA) of $188.60, which presents a short-term bullish signal. The 20-day and 50-day SMAs, at $191.51 and $193.71 respectively, remain above the current price, suggesting a bearish outlook in the medium term.

Looking further out, AbbVie’s position above the 200-day SMA of $177.29 provides a more optimistic long-term perspective. The MACD indicator, currently at negative 1.35, confirms the short-term bearish trend, while the RSI at 45.07 indicates a neutral performance. Should the RSI drop below 30, it could point to a potential reversal.

In summary, while the technical outlook leans bearish, there are indicators of buying pressure that may suggest a bullish shift is on the horizon.

Analysts Predict Over 10% Potential Increase for AbbVie

Ratings & Consensus Estimates: The average analyst rating for AbbVie stock is a Buy, with a price target set at $185.11. Recent evaluations from Citigroup, BofA Securities, and BMO Capital project a higher average price target of $210, indicating a possible 10.58% upside.

ABBV Price Action: As of Tuesday’s publication, AbbVie stock is down 0.12%, trading at $189.45.

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