Why AbbVie (ABBV) Stock Is Up Today

NEW YORK (TheStreet) -- AbbVie (ABBV) was gaining 0.8% to $58.44 Friday following reports that it's considering plans to raise more financing to acquire Shire (SHP)  after new U.S. rules against inversion deals.

The drug manufacturer may look to borrow as much as $7 billion more than its original acquisition plan called for due to new restrictions against using offshore cash, according to Bloomberg. Any plans are still in early stages as the company looks over the structure of the deal following the new rules.

The U.S. government imposed the new anti-inversion rules as a way to stop U.S. companies from acquiring overseas companies and using them to reincorporate in countries with lower tax rates. AbbVie planned to reincorporate after acquiring the London-based Shire.

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TheStreet Ratings team rates ABBVIE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ABBVIE INC (ABBV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk."

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