I believe AbbVie is likely 15 - 20% undervalued at current price. That figure suggests a forward Price to Earnings ("P/E") ratio of ~10x, which is well below the US Big Pharma sector average of ~23x, although it should be noted that the GAAP/non-adjusted EPS may be only significantly lower than the adjusted figure, based on adjusted EPS of $6.52 across H1'22, and GAAP EPS of $3.03 over the same period. AT&T Inc. (T) stock forecast and price target Find the latest AT&T Inc. T analyst stock forecast, price target, and recommendation trends with in-depth analysis from research reports. AbbVie stock was up after posting a mixed fourth-quarter earnings report, but with the company's patent expiring on Humira, the stock is a hold, February 24, 2023|americanbankingnews.com, February 23, 2023|americanbankingnews.com. Bringing RGX314 would be a coup for AbbVie although I am forecasting for only $2bn in peak revenues in 2030 as a hedge against the risk that this candidate does not make it to market on safety grounds. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Shareholders of record on Friday, April 14th will be given a dividend of $1.48 per share on Monday, May 15th. Should I buy or sell AbbVie stock right now? Between September 2021 and April 2022, AbbVie stock went on a sensational bull run, gaining 62% and hitting an all-time peak of $174. The company's lead asset - all-time best selling immunology drug Humira - finally loses patent protection this year and sales will enter a period of terminal decline. GSK Free Cash Flow Forecast for 2023 - 2025 - 2030. See AbbVie Inc. stock price prediction for 1 year made by analysts and compare it to price changes over time to develop a better trading strategy. The dividend payout ratio of AbbVie is 89.56%. The surge in revenues can primarily be attributed to its Allergan. The company may not generate as much excitement as some of the other members of the "Big 8" - most notably Eli Lilly and its weight loss franchise, but the path to revenue growth, expanding margins and a growing share price is clear. The P/E ratio of AbbVie is 23.61, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 100.12. In-depth profiles and analysis for 20,000 public companies. This has been in spite of a string of macroeconomic headwinds such as the ongoing Russia-Ukraine war that has contributed to record high inflation in the US and the UK, and the companys psoriatic arthritis drug Adalimumab, known as Humira, facing biosimilar rivals in the US from 2023. The other major plus is probably the performance of the neuroscience divisions, where as we can see, Botox (indicated for migraine treatment), atypical antipsychotic Vraylar, migraine therapy Ubrelvy and newly launched Qulipta, an oral CGRP inhibitor indicated for chronic migraine all delivered good sales growth. In 2022, the company will most likely boast 12 "blockbuster" (>$1bn per annum) selling assets, driving ~$48bn of revenues between them, with Humira being the only drug that faces a near term patent expiry, whilst AbbVie is promising at least 6 or 7 major new product launches by 2026. I hope to see you there. Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. Within eye care, Restasis was a major disappointment, and the entire division seems to be struggling, with total revenues falling from ~$920m in Q2'21, to ~$720m in Q2'22. During the same quarter in the prior year, the firm posted $3.31 EPS. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. What guidance has AbbVie issued on next quarter's earnings? Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. contact@marketbeat.com Morningstar: 2019 Morningstar, Inc. All Rights Reserved. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. That was below AbbVie stock analysts' view for $14.16. The "King Of Quants" sees 10X potential Eric Fry believes he just discovered America's next "Wealth Supercluster" and it's forming in the place you'd least expect. Get daily stock ideas from top-performing Wall Street analysts. About the AbbVie, Inc. stock forecast. How do I arrive at my share price target? Their ABBV share price forecasts range from $140.00 to $200.00. Nevertheless, after applying the discount factor, I calculate a share price target of $151 based on DCF analysis and a slightly higher figure of $168 based on EBITDA analysis. Net earnings also saw a steep rise to $4.49bn from $3.55bn, while net revenue jumped to $13.54bn from 13.01bn. 2022 Cable News Network. AbbVie product revenues by quarter and year since FY20. ABBV closed at $152.49 on 29 June, which was above its 200-day moving average (MA) of 136.42, indicating a bullish signal for the stocks price movement ahead, according to data from TradingView. I have plugged my revenue expectations into this table knowing that they closely match AbbVie management's own expectations based on what they have said in public. Build a CFD portfolio with your favourite companies. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . The company provided earnings per share (EPS) guidance of $10.70- for the period. Whether these factors make ABBV a good investment for you or not will depend on your portfolio composition, investment goals and risk profile, among other factors. All rights reserved. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? AbbVie probably does not want to be recognized as simply an immunology giant however, it wants to be substantially more diversified and like all major Pharma's it has a strong long-term focus on oncology. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential. The weighted average cost of capital I estimate to be 9.6% - I tend to use a WACC of 10% for most Big Pharma analysis. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. According to 34 stock analysts, the average 12-month stock price forecast for AbbVie stock is $166.14, which predicts an increase of 7.62%. Please. AbbVie, like its parent Abbot Laboratories, is a well-established dividend growth stock. call (03) 8658 0539 support.au@capital.com. I am not receiving compensation for it (other than from Seeking Alpha). (AbbVie data). Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. I have been maintaining a revenue forecasting table for AbbVie's products which I have amended based on Q2'22 and H1'22 results, and the slightly downgraded guidance issued for 2022 - management now expects adjusted earnings per share ("EPS") of $13.78 - $13.98, representing growth of 17% at the midpoint. Read our dividend analysis for ABBV. The five-year dividend growth rate is just below 18%. (AbbVie JPM Healthcare conference presentation). RHHBY vs. ABBV: Which Stock Is the Better Value Option? I haven't included Epcoritamab sales in my forecasts this time, but I hope to adjust the table before Q3'22 results are announced. Although Wallet Investor did not provide targets for 2030, its longer-term Abbvie stock prediction expected the price to hit $300.386 in June 2027. The company has a robust pipeline of new products that are in some stage of clinical trials. Factset: FactSet Research Systems Inc.2019. As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ and our data indicates that the asset price has been in an uptrend for the past 1 year (or since its inception).. Abbvie stock price as been showing a rising tendency so we believe that similar market segments were very popular in the given time frame. ABBV has several positive factors pushing its price performance. The Abbvie stock forecast for 2025 had the price at $259.018. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. When I began this post it was in my mind to give AbbVie stock a "Hold" rating owing to an underwhelming - on some levels - set of Q2'22 earnings, some concerns around high revenue generating products such as Imbruvica, Juvederm, and Restasis, the disappearance of the Women's Health division, the imminent LOE for Humira and the high levels of debt. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. Receive regular, detailed analysis focused on biotech and healthcare stocks. Slide from JPM Conference 2022 presentation. Assuming there are 2 highly effective drugs for 1 disease, PMedicine seeks to identify which patients respond better to each. Both of these assets appear to be doing the job they were intended for - protecting AbbVie's dominance in various auto-immune markets - and now represent ~13% of AbbVie's total revenue generation. The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. (JPM Healthcare conference presentation), Skyrizi's performance has been particularly eye-catching. Export data to Excel for your own analysis. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. There are still very few approved therapies, although that could change with Crispr Therapeutics (CRSP) / Vertex (VRTX) Sickle Cell Disease therapy leading the charge in 2023. This suggests a possible upside of 3.8% from the stock's current price. Ltd., AbbVie Pty Ltd, AbbVie Purchasing LLC, AbbVie Real Estate Management GmbH, AbbVie Research B.V., AbbVie Resources Inc., AbbVie Resources International Inc., AbbVie Respiratory LLC, AbbVie S. de R.L., AbbVie S.A., AbbVie S.A., AbbVie S.A.S., AbbVie S.R.L., AbbVie S.r.l., AbbVie S. r.l., AbbVie SA, AbbVie SAS, AbbVie SIA, AbbVie Sarl, AbbVie Sdn. I have no business relationship with any company whose stock is mentioned in this article. That led to an overall 6% year-on-year gain of 6%, and a 13% sequential gain. This included an unfavourable impact of $0.08 a share related to acquired in-process research and development (IPR&D) and milestones expenses incurred during the March quarter. Post-spin, AbbVie emerged as a research-based biopharma that has more than doubled in size. ABBV currently yields 4.1% and has raised its dividend every year since 2013. on the strength of its future rather than present portfolio. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. Compare Top Brokerages Here. Their ABBV share price forecasts range from $140.00 to $200.00. What intrigues here is the possibility of RGX-314, an anti-VEGF gene therapy that Gonzalez believes "has the potential to be a one-time treatment for wet AMD, diabetic retinopathy and other chronic retinal conditions". Skyrizi is a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialisation globally. Our momentum combined with ramping contributions from new products and new indications will drive accelerating revenue and EPS growth through the rest of the year., ABBV has done very well to add to its impressive gains from the past couple of years. Out of the most recent ratings, BMO Capital Markets Gary Nachman raised its price target from $161 to $174 with an outperform rating, while Truist Financial analyst Robyn Karnauskas raised the Abbvie stock prediction from $118 to $135 while raising rating to a buy. This could present more profit potential for drugmakers as well as investors. What is Richard A. Gonzalez's approval rating as AbbVie's CEO? We expect that to happen in 2027 with continued significant growth anticipated in the following years. 580 employees have rated AbbVie Chief Executive Officer Richard A. Gonzalez on Glassdoor.com. AbbVie trades on the New York Stock Exchange (NYSE) under the ticker symbol "ABBV.". ABBV-916 is therefore a real opportunity for AbbVie to develop a more effective and safer drug in the same class and claim a sizeable share of a 6m patient market. To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. Discovery Company. The firm earned $15.12 billion during the quarter, compared to the consensus estimate of $15.30 billion. Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). Wallet Investor suggested that the price could hit $300.386 in June 2027. One of the few pain points AbbVie experienced during a year of portfolio wide growth in 2022 was the decline in the revenue contribution from Imbruvica, approved to treat various types of lymphoma. AbbVie passed that onto its 2022 guidance. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. Management are very optimistic on Vraylar, with Gonzalez describing it as "now the only antipsychotic that is a dopamine and serotonin partial agonist approved for the treatment of the most common forms of depression, Bipolar 1 and MDD" and targeting >$5bn peak sales. Always conduct your own due diligence before investing. The average price target represents a 6.33% change from the last price of $153.90. View institutional ownership trends. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. I am not receiving compensation for it (other than from Seeking Alpha). AbbVie stock is one of the most well-known pharmaceutical companies. That is interesting to me as I think it suggests management will need to commercialize more assets if it wants to hit that target. My EPS figure increases slightly between 2022 and 2023, whilst AbbVie has suggested it will be down slightly before beginning to accelerate towards the end of the decade, as revenues correspondingly begin to climb sharply once the worst of the Humira LOE is over. The average price target is $163.64 with a high forecast of $190.00 and a low forecast of $133.00. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. That makes companies like AbbVie generally very attractive to investors although it should be noted that AbbVie carries a very high level of debt which stood at >$60bn as of Q322 - more or less the amount the company paid to acquire Allergan. This suggests a possible upside of 3.2% from the stock's current price. The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. Management believes these 2 drugs could one day generate $15bn in peak sales, going a long way to solving the Humira loss of exclusivity ("LOE") problem. If you rely on the information on this page then you do so entirely on your own risk. According to AbbVie CEO Rick Gonzalez, speaking on the Q2'22 earnings call, "Skyrizi's total prescription share of the U.S. biological market (in psoriasis) has increased to approximately 26%", and". All Rights Reserved. Management initially blamed slow take-up post pandemic for the drug's declining sales, but Gonzalez also told JPM Conference attendees that "new competitive entrants has significantly lowered our sales expectations for Imbruvica". Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. Please disable your ad-blocker and refresh. As we can see the immunology division consists of only 3 assets yet by my calculation, will likely account for 50% of AbbVie's revenues in 2022 (to calculate 2022 sales revenues by product, since we do not yet have final figures, I have used 9m 2022 figures and assumed Q4 revenues will be the average of the previous 3 quarters). Projections are based on making fundamental and technical studies of the ABBV stock price performance. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. The ex-dividend date of this dividend is Thursday, April 13th. Data from two Phase 3 induction studies and one maintenance study supported the approval. Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. It revealed that patients with moderate to severe Crohns disease receiving Abbvies Rinvoq achieved steroid-free clinical remission in significantly higher numbers than patients receiving a placebo. z o.o., AbbVie Spain S.L., AbbVie Stemcentrx LLC, AbbVie Trading S.R.L., AbbVie Trustee Company Limited, AbbVie Tbbi lalar Sanayi ve Ticaret Limited irketi, AbbVie UAB, AbbVie UK Biopharmaceuticals Ltd, AbbVie UK Holdco Limited, AbbVie UK Ltd, AbbVie US Holdings LLC, AbbVie US LLC, AbbVie Venezuela B.V., AbbVie Venezuela Holdings B.V., AbbVie Ventures LLC, AbbVie d.o.o., AbbVie s.r.o., Aeropharm Technology LLC, Allergan, BioDisplay Technologies Inc., Fournier Laboratories Ireland Ltd., Fremont Holding L.L.C., Fundacin AbbVie, IEP Pharmaceutical Devices LLC, ImmuVen, KOS Pharmaceuticals Inc., Knoll LLC, Knoll Pharmaceutical Company, Life Properties Inc., Mavupharma, Organics L.L.C., Pharmacyclics (Europe) Limited, Pharmacyclics (Shanghai) Management Consulting Services Limited, Pharmacyclics Cayman Ltd., Pharmacyclics Inc, Pharmacyclics LLC, Pharmacyclics Switzerland GmbH, Rowell Laboratories Inc., S.C. AbbVie S.R.L., Sapphire Merger Sub Inc., Stem CentRx, Stemcentrx Cayman Ltd., Suffolk Merger Sub Inc., and Unimed Pharmaceuticals LLC. The company is focused on research and has a number of collaborations and partnerships to that end. There has been a raft of price-moving news for Abbvie, which may positively affect the stock price. As of 30 June, analysts price predictions compiled by MarketBeats and long-term forecasts by Wallet Investor projected that the ABBV stock price could rise. Always do your own research on a stocks price performance and predictions before making an investment. Remember that past performance is not a guarantee of future results and you should never invest more money than you can afford to lose. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. But AbbVie is also keen to explore solid tumors, and I am therefore adding an additional $1.5bn of revenues from that source by 2030.

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