NEW YORK (TheStreet) -- Shares of AbbVie Inc. (ABBV) were down 0.52% to $67.03 in midday trading Thursday, after analysts at Morgan Stanley resumed coverage on the pharmaceutical company with an "equal weight" rating this morning.
Analysts at the firm set a price target of $72 on AbbVie shares and noted some long-term uncertainty.
At the same time, Morgan Stanley added that there is significant margin enhancement opportunities going forward.
The firm expects the company to report operating margins of 41% for 2015, which would rise to 50% in 2020 driven by factors including operating leverage, the elimination of royalties associated with Humira, and future cost-cutting initiatives.
North Chicago, Ill.-based AbbVie is a global research-based pharmaceutical company. The company's products are used to treat chronic autoimmune diseases.
Its portfolio of products includes HUMIRA, Synthroid, AndroGel, Creon, Kaletra, Norvir, Lupron, Niaspan, TriCor, TRILIPIX, Synagis, Duodopa, Duopa, Zemplar and Sevofluran.
Insight from TheStreet's Research Team:
We look for stocks that exhibit great Relative Strength vs. the market. This tells us that after a market drop we'll see money starting to flow towards the best and strongest names. As the market has been undergoing some rolling corrections and selling under the surface, there are names that have been working.
Since spinning off from Abbott Laboratories (ABT) in late 2012, AbbVie has more than doubled. For a big pharma name, that is quite impressive. If it breaks resistance here at $67 there is some big time upside left.