Investing.com — HSBC has identified its top pharmaceutical stock picks, highlighting companies with strong growth prospects and solid execution strategies across both growth and value categories.
The investment bank’s analysis focuses on firms offering sector-leading expansion potential, robust pipelines, and manageable risk profiles in an evolving healthcare landscape.
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HSBC rates the stock as Buy with a price target of USD275.00, positioning it as a Growth/GARP idea. The bank believes AbbVie offers sector-leading growth with a manageable patent cliff. HSBC notes that concerns around Skyrizi’s competition from Tremfya and Icotyde are overdone, suggesting the market may be underestimating the drug’s competitive position.
AbbVie announced positive top-line results from a Phase 1 study of its obesity drug candidate, ABBV-295, and also reported that its Phase 3 study of Skyrizi for Crohn’s disease met its primary endpoints.
Johnson & Johnson HSBC upgraded its price target to USD280.00 from USD265.00 while maintaining a Buy rating. The stock is classified as a Growth/GARP idea. The bank notes that Johnson & Johnson offers an accelerating growth profile in the coming years, with limited dependence on pipeline for growth. HSBC also sees limited impact from tariffs or most favored nation pricing on the company’s performance.
Johnson & Johnson received U.S. FDA approval for ICOTYDE, an oral treatment for moderate-to-severe plaque psoriasis. Additionally, BofA Securities raised its price target on the company, citing its pipeline outlook.
Rated Buy with a price target raised to USD32.00 from USD29.00, Pfizer is HSBC’s preferred value pick in the sector. The bank believes the market underappreciates the potential from atirmociclib and the company’s next-generation immuno-oncology strategy. HSBC also sees limited risks of value-destructive deals, making it an attractive value proposition.
Pfizer reported positive Phase 2 trial results for its breast cancer drug candidate, atirmociclib, which showed a statistically significant improvement in progression-free survival. The company also announced that its experimental antibody, tilrekimig, met the primary endpoint in a Phase 2 study for atopic dermatitis.
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