The S&P 500 (US500) lost 9.1%, the Dow Jones (US30) slid 9.7%, and the Nasdaq Composite fell 23% during the same period. 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". AbbVie is a leading dividend payer. The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. These are Immunology, Oncology, Neurology, Virology and Eye Care. I am modelling for AbbVie to grow revenues at a compound annual growth rate of ~5% between now and 2030 with growth accelerating in the latter half of the decade. I'm on twitter @edmundingham. target price for AbbVie stock based on DCF / EBITDA multiple analysis (my table and assumptions). Having so much debt in a prevailing inflationary environment is also unattractive. AbbVie's success - as its shareholders will doubtless be aware - stems from the runaway success of its immunology drug Humira, which is indicated for a range of autoimmune conditions, including Rheumatoid Arthritis, Psoriatic Arthritis, Psoriasis, Crohn's Disease, Ulcerative Colitis, Hidradenitis Suppurativa and Ankylosing spondylitis. Please. The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. Perhaps this is an example of how ruthless management can be when encountering falling sales, and a warning that not all company divisions are guaranteed to thrive. AbbVie discounted cash flow analysis. In February, a Phase 3 induction study saw positive top-line results. For the next eight years, the forecast is for Free Cash Flow to grow by . Since its 2013 separation from Abbott Laboratories (ABT 1.78%), AbbVie's stock has grown more than 160%. It is generally accepted however that 2023 will see the entrants into the US market of several generic versions of Humira - which works by inhibiting Tumor Necrosis Factor ("TNF"), an inflammation causing protein - from the likes of Viatris (VTRS), Organon (OGN), Pfizer (PFE), Amgen (AMGN), and several more companies involved in the development and sale of generic or biosimilar drugs. on the strength of its future rather than present portfolio. Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). To summarize, Humira may be going off-patent, but is more than capable of delivering double-digit billion revenues for another 3-4 years, and even in 2030, it could be amongst the top 20 best-selling drugs worldwide. According to the Abbvie stock technical analysis, as of 30 June, the Relative Strength Index (RSI) was pointing to neutral at 62.18. Always conduct your own due diligence before investing. I have no business relationship with any company whose stock is mentioned in this article. I have not managed to match management's ambitious high-single-digit growth figures from 2025 - 2023, despite anticipating 6% growth for nearly all products in that period. I am not receiving compensation for it (other than from Seeking Alpha). All rights reserved. In the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. All Rights Reserved. Sign in to your free account to enjoy all that MarketBeat has to offer. Abbvies first quarter 2022 financial results for the quarter ended 31 March revealed that diluted earnings per share (EPS) increased to $2.51 on a generally accepted accounting principles (GAAP) basis, up from $1.99 a year earlier. 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). There are currently 9 hold ratings and 7 buy ratings for the stock. This suggests a possible upside of 3.2% from the stock's current price. In my modeling table above, I estimate Humira sales will decline by 25% between 2022 and 2023, to ~$16bn, although some of that lost revenue will be gobbled up by Skyrizi/Rinvoq. Abbvie Stock Forecast 2023 In the Biopharmaceutical Industry, Abbvie has been able to create a leadership position in the market in each business segment with different brand names in different business categories like Immunology, Hematologic Oncology, Neuroscience, Aesthetics, and Eye Care. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. AbbVie Fair Value Forecast for 2023 - 2025 - 2030 In the last two years, AbbVie's Price has grown, increasing from $91.55 to $130.05 - an increase of 42.06%. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. With no LOEs on the horizon, it is relatively plain sailing for the company ex-Humira, and the performance of Skyrizi and Rinvoq - to date at least - suggests management does have this massive patent cliff covered. For the next nine years, the forecast is for Revenue to grow by 3.57%. (my tables). Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. Remember that past performance is not a guarantee of future results and you should never invest more money than you can afford to lose. With AbbVie's revenues accelerating past $80bn in 2030 (by my calculation), and cash flow generated in that year being >$25bn, after applying discount factors for each year I reach a price target of $176 - the average of DCF - $162 per share - and EBITDA - $189 per share - calculations. Receive regular, detailed analysis focused on biotech and healthcare stocks. I have no business relationship with any company whose stock is mentioned in this article. 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. All times are ET. Having dived into the numbers however and looked ahead to 2030 through the eyes and guidance of management, my conclusion is that investors can probably buy AbbVie stock at current price with reasonably high hopes of making a decent ROI - perhaps 15 - 20% in the next 12 - 18 months, whilst also benefiting from a generous dividend. I write about Biotech, Pharma and Healthcare stocks and share investment tips. Venclexta - a "first-in-class BCL-2 inhibitor for multiple hematological malignancies", according to Gonzalez, is forecast for strong growth, whilst Gonzalez has name checked 3 new drugs he expects to be approved by 2026. As with debt, if approval and revenue targets aren't met, it can quickly result in a loss of faith in the company. Net earnings also saw a steep rise to $4.49bn from $3.55bn, while net revenue jumped to $13.54bn from 13.01bn. That same month, the FDA extended the review period for Skyrizi (risankizumab), a treatment drug for moderate to severe Crohns disease in patients aged 16 and older. In this article we take a closer look at the Abbvie stock forecast, after analysing the firms latest earnings, price moving news and analyst comments. In the past I have written about the high level of competition between major Pharma in the auto-immune space - for example, for Psoriatic Arthritis the list of approved drugs includes Humira, UCB Pharma's Cimzia, Amgen's Enbrel, Johnson & Johnson's (JNJ) Stelara, Eli Lilly's (LLY) Talzt, Novartis' (NVS) Cosentyx and Bristol-Myers Squibb's (BMY) Orencia. The pharma industry witnessed solid growth amid the pandemic. Excluding items, AbbVie earned $3.31 per share, beating estimates of $3.29 . AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . The average analyst rating for AbbVie stock from 34 stock analysts is "Buy". ABBV-916 is targeting Alzheimer's and it is an anti-amyloid antibody, with a similar mechanism of action ("MoA") to recently approved Leqembi, developed by Biogen (BIIB) / Eisai, and likely soon-to-be approved Donanemab, developed by Eli Lilly. Capital Com Australia Pty Ltd (ABN 47 625 601 489) is a company registered in Australia and regulated by the Australian Securities and Investments Commission (ASIC) under AFSL 513393. I have downgraded my forecasts to 2016 accordingly however to 2% annual growth. View analysts price targets for ABBV or view top-rated stocks among Wall Street analysts. Real-time analyst ratings, insider transactions, earnings data, and more. As we can see above one of either Skyrizi or Rinvoq has now been approved for all of the same indications as Humira is, except for Hidradenitis Suppurativa, although Rinvoq is undergoing a Phase study in this indication. Enjoy your holiday weekend and catch up on our most read stories this week. AbbVie trades on the New York Stock Exchange (NYSE) under the ticker symbol "ABBV.". Forecast target price for 03-06-2023: $ 152.58. When looking for ABBV stock forecasts, it's important to bear in mind that analysts' forecasts can be wrong. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. The drug is now approved in severe Rheumatoid Arthritis, active Psoriatic Arthritis, moderate to severe Atopic Dermatitis, Ulcerative Colitis, active Ankylosing Spondylitis, with Crohn's Disease the next approval on the list. 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. Their ABBV share price forecasts range from $140.00 to $200.00. Is this happening to you frequently? Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. 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. Other approved ADC's targeting the c-Met protein, a validated target in NSCLC, include Novartis Tabrecta, which has been pegged for peak sales of ~$1.5bn, which seems a realistic target for Teliso given how large the lung cancer market is - the largest of all oncology markets. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. Skyrizi has shown superiority to Humira in fields such as plaque psoriasis by a statistically significant amount, with a comparable safety profile, whilst Rinvoq has shown superiority in e.g. The company reported its first revenue for Botox competitor Daxxify. Skyrizi has also been approved to treat Crohn's Disease, an added bonus and another multi-billion dollar market. What is the dividend yield for AbbVie? Kateryna Onyshchuk/iStock via Getty Images. I write about Biotech, Pharma and Healthcare stocks and share investment tips. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. Only 0.08% of the stock of AbbVie is held by insiders. Stock Price Forecast The 21 analysts offering 12-month price forecasts for Abbvie Inc have a median target of 165.00, with a high estimate of 200.00 and a low estimate of 135.00. It now expects full-year profit in the range of $13.92-$14.12 a share. As I have mentioned in previous notes, however, the gains owe more to price hikes than sales volumes, and come 2023 and the LOE, even AbbVie admits the blow to revenues will be substantial. Refer to our. Negative dynamics for AbbVie shares will prevail with possible volatility of 1.976%. Abbvies haematologic oncology portfolio, neuroscience portfolio and aesthetics portfolio reported net revenues of $1.65bn, $1.49bn and $1.37bn, respectively. And it couldnt be more wrong! I wrote this article myself, and it expresses my own opinions. I wrote this article myself, and it expresses my own opinions. Fawad Razaqzada, market analyst for City Index and FOREX.com, commenting to Capital.com, said: As of 30 June, analyst ratings compiled by MarketBeat shared different price targets for Abbvie stock. Sales are expected to recover in H2'22, however, and forecast year-on-year growth. Projections are based on making fundamental and technical studies of the ABBV stock price performance. The difference between trading assets and CFDs. Abbvie stock price has put up an impressive performance in 2022. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. The following companies are subsidiares of AbbVie: AbbVie (Gibraltar) Holdings Limited, AbbVie (Gibraltar) Holdings Limited Luxembourg S.C.S., AbbVie (Gibraltar) Limited, AbbVie (Pty) Ltd., AbbVie A/S, AbbVie AB, AbbVie AG, AbbVie AS, AbbVie Australasia Holdings Limited, AbbVie B.V., AbbVie Bahamas Ltd., AbbVie Biofarmacevtska druba d.o.o., AbbVie Biopharmaceuticals GmbH, AbbVie Biopharmaceuticals LLC, AbbVie Biopharmaceuticals Ltd., AbbVie Bioresearch Center Inc., AbbVie Biotech Ventures Inc., AbbVie Biotechnology GmbH, AbbVie Biotechnology Ltd, AbbVie Biotherapeutics Inc., AbbVie Biotherapeutics Limited, AbbVie Central Finance B.V., AbbVie Corp, AbbVie Corporation, AbbVie Deutschland GmbH & Co. KG, AbbVie EOOD, AbbVie Endocrine Inc., AbbVie Endocrinology Inc., AbbVie Farmacuticos S.A. de C.V., AbbVie Farmacutica Ltda., AbbVie Finance B.V., AbbVie Finance Corporation, AbbVie Finance LLC, AbbVie GK, AbbVie GmbH, AbbVie Holdings Corporation, AbbVie Holdings Inc., AbbVie Holdings KK, AbbVie Holdings SAS, AbbVie Holdings Unlimited, AbbVie Holdings s.r.o., AbbVie International S. r.l., AbbVie Investments Limited, AbbVie Investments S. r.l., AbbVie Ireland Holdings Limited, AbbVie Ireland NL B.V., AbbVie Ireland Unlimited Company, AbbVie Japan Holdings B.V., AbbVie Kft., AbbVie Komplementr GmbH, AbbVie L.L.C., AbbVie L.da, AbbVie Limited, AbbVie Limited Liability Company, AbbVie Logistics B.V., AbbVie Ltd, AbbVie Ltd., AbbVie Manufacturing Management Limited, AbbVie Nederland Holdings B.V., AbbVie Operations Singapore Pte. Please. In most cases, trials are underway for multiple indications, including some therapies that have already been approved for 1 or more conditions. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. And never invest or trade money you cannot afford to lose. 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. You should do your own research and never invest money you cannot afford to lose. AbbVie Stock Forecast 03-06-2023. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. That certainly won't derail the oncology division however. Please disable your ad-blocker and refresh. Their combined revenues are expected to reach $7.5bn in 2022, and Gonzalez told the audience at JPM that: Skyrizi and Rinvoq are now on pace to deliver more than $17.5 billion in combined sales, risk adjusted sales in 2025, well above our previous expectations. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. AbbVie does not have the funds to pursue any large M&A deals, but it does not need to either, given the strength of its pipeline and products. 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. Armed with management's detailed guidance and commentary on sales performance of key assets and new product launches, however, I have completed sales projections for AbbVie to 2030, which I will share in this post, highlighting areas of strength and potential weaknesses. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. This means that . While some of the gains are due to investor perception that it is a strong company, some view ABBV as a defensive stock, with most of the other stocks in the sector also doing well. As such I have downgraded my own growth expectations in the forecasting table above, reducing annual growth from 7.5%, to just 2.5%, after forecasting for $5bn revenues in FY22 - down 7.5% year-on-year. See AbbVie Inc. (ABBV) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Investors are already flocking there for a chance at 1,000%+ returns. Richard A. Gonzalez has an approval rating of 88% among the company's employees. AbbVie is a leader in ESG and sustainability. AbbVie projected sales - immunology (my forecasts and assumptions). 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. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. The average Abbvie stock price prediction forecasts a potential upside of 7.07% from the current ABBV share price of $155.27. Receive regular, detailed analysis focused on biotech and healthcare stocks. This rating has held steady since February, when it was unchanged from a Buy rating.Move your mouse over pastmonths for detail. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. ABBV has several positive factors pushing its price performance. Nineteen analysts predict that AbbVie's share price will increase in the coming year, reaching $165.00. 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. Shares of ABBV stock can be purchased through any online brokerage account. Venclexta continues to pick up momentum with sales up 16% to >$500m in Q2'22, and I forecast the drug to exceed $3.2bn in revenues by the end of the decade. 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. The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. 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's total revenue grew a solid 51% to $50.2 billion over the last twelve month period, compared to $33.0 billion in 2019. That is interesting to me as I think it suggests management will need to commercialize more assets if it wants to hit that target. Read our dividend analysis for ABBV. AbbVie Inc. (NYSE:ABBV) posted its earnings results on Thursday, February, 9th. CFDs are complex leveraged instruments and come with a high risk of losing money. AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. I am not receiving compensation for it (other than from Seeking Alpha). PMeds are designed not only to target the specific causes of diseases, often at the genetic level, but the patients that are most likely to benefit from them. The company didn't offer a . For full year 2022, Abbvie predicted the adjusted diluted EPS guidance range at $14.00 to $14.20 and $13.92 to $14.12. . Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. 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. Get daily stock ideas from top-performing Wall Street analysts. About the AbbVie, Inc. stock forecast. View our ABBV earnings forecast.
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