losed Joint Stock Company FinTech Solutions, Fidelity NASDAQ Composite Index Tracking Stock Fund, Abbvie stock price analysis: Past year performance, Abbvie fundamental analysis: Q1 2022 earnings, Abbvie stock forecast: Company guidance and analysts predictions. The stocks growth marks a significant outperformance over the broader markets. Between September 2021 and April 2022, AbbVie stock went on a sensational bull run, gaining 62% and hitting an all-time peak of $174. target price for AbbVie stock based on DCF / EBITDA multiple analysis (my table and assumptions). What is the dividend yield for AbbVie? The dividend payout ratio is 89.56%. (my tables and forecasting). AbbVie's Dividend and Valuation. In my model I have then reduced revenues by 20% between 2024 - 2026, and then by 10% per annum between 2027 - 2030. This rating has held steady since February, when it was unchanged from a Buy rating.Move your mouse over pastmonths for detail. 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. Teliso V is an antibody drug conjugate and a c-Met inhibitor. The firm earned $15.12 billion during the quarter, compared to the consensus estimate of $15.30 billion. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. The lowest target is $136.35 and the highest is $210. Receive regular, detailed analysis focused on biotech and healthcare stocks. Naturally, if there is a more effective and safe drug than Humira available for the same indication, then physicians are likely to prescribe it over Humira, or a Humira biosimilar. 164.71 0.00 0.00%. In summary, the total revenue increase of just 4% year-on-year in Q2'22 might disappoint a few investors, as might the downgraded guidance, although it is hard to argue that AbbVie is a bad investment when we consider that the Pharma also pays a dividend of $1.41 per quarter, yielding 4% per annum, drove operating earnings of $3.925bn on a GAAP basis, and trades at a >10% discount to my calculated target price. Get short term trading ideas from the MarketBeat Idea Engine. 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. AbbVie will have to drop its price point to compete with the generics however, plus there is the 10% of the market it is not covered for, so an overall 20% decline in revenues in 2023 seems accurate. A major reason behind Abbvies stellar performance amid the ongoing economic crises is the resolution of the companys Humira (adalimumab) litigation with Alvotech in March 2022. View which stocks are hot on social media with MarketBeat's trending stocks report. Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. Nineteen analysts predict that AbbVie's share price will increase in the coming year, reaching $165.00. My calculation is that Humira revenues in 2023 will be 80% of the 2022 figure, or $16.7bn. Please. Nevertheless, AbbVie is clearly under huge pressure to protect its dominance in the immunology markets, and the signs are it has been able to do just that thanks to the launches of 2 new drugs - Skyrizi and Rinvoq. That was below AbbVie stock analysts' view for $14.16. Since then, however, the stock price has fallen 18% to its current price of $142.6. Forecasts shouldnt be used as a substitute for your own 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. Among the more notable are ImmuVen, Pharamcyclics and Allergan plc. It now expects full-year profit in the range of $13.92-$14.12 a share. Multidrug Resistant Bacteria Treatment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2030) Published: March 2, 2023 at 2:55 a.m. AbbVie updated its FY 2024 earnings guidance on Friday, February, 10th. You should consider whether you understand how CFDs work and can afford the risks. Abbvies haematologic oncology portfolio, neuroscience portfolio and aesthetics portfolio reported net revenues of $1.65bn, $1.49bn and $1.37bn, respectively. That certainly won't derail the oncology division however. And it couldnt be more wrong! I am not receiving compensation for it (other than from Seeking Alpha). View the best growth stocks for 2023 here. Skyrizi and Rinvoq will together achieve a higher peak sales figure than even Humira could manage, even while Humira is still making a substantial top line contribution, still accounting for as much of 7% of AbbVie's total sales in 2030. The next two approvals - for Navitoclax in Myelofibrosis and Teliso V in non squamous non-small cell lung cancer ("NSCLC") - are anticipated by management in 2024. View analysts price targets for ABBV or view top-rated stocks among Wall Street analysts. Among its many positions is sustainable operations so it can deliver life-changing therapies to those who need them most. To summarize, although AbbVie does not have the same clout in oncology as it does in immunology - as evidenced perhaps by the declining sales of Imbruvica - it is clearly an area of focus for management. 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. Shares are consolidating with a buy. There are currently 9 hold ratings and 7 buy ratings for the stock. The five-year dividend growth rate is just below 18%. Analysts have tipped the drug to achieve peak sales of $2.75bn, and although the emergence of CAR-T therapies and some concerns around safety - notably cases of cytokine release syndrome ("CRS') - persist, this revenue figure is achievable in my view. AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. I had felt this could be an issue for Skyrizi and Rinvoq, given it is rare for a drug to be as dominant as Humira was, but although the level of competition is fierce, both drugs are more than meeting expectations, and with the entire auto-immune market worth as much as $45 - $50bn, it does seem possible that Skyrizi and Rinvoq could one day generate >$20bn revenues between them, as management hopes. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. I look forward to seeing if Epcoritamab is approved this year, and although there is not a lot else in the near-term pipeline at this time, I also look forward to seeing how other projects may progress, e.g., opportunities in Parkinson's Disease, Alzheimer's and Cystic Fibrosis. I wrote this article myself, and it expresses my own opinions. For the next eight years, the forecast is for Free Cash Flow to grow by . After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. AbbVie Stock Forecast 2023 $165.00 In the last five quarters, AbbVie's Price Target has risen from $122.84 to $162.12 - a 31.98% increase. AbbVie is a leading dividend payer. The company reported its first revenue for Botox competitor Daxxify. We expect that to happen in 2027 with continued significant growth anticipated in the following years. 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. 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. The companys full-year adjusted diluted EPS guidance excluded any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of the year, as both cannot be reliably forecasted. It is in business to discover, develop, manufacture and market pharmaceuticals globally but in a way that best serves the needs of patients and the global community. ABBV Stock 12 Months Forecast. The company earns $11.84 billion in net income (profit) each year or $6.61 on an earnings per share basis. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. The ex-dividend date of this dividend is Thursday, April 13th. Management puts this down to "delayed market recovery for new patients starting therapy in Chronic Lymphocytic Leukemia ("CLL") and increasing competition" and has downgraded its FY22 guidance as a result. 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. Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. The important point here is that physicians will not necessarily be under any pressure to switch patients from Humira to a biosimilar, given, as Gonzalez puts it: there won't be any difference between the biosimilar and Humira from a co-pay standpoint or any kind of a step editing. Gene therapies have been a long time coming, having first been popularized in the early noughties. Below, I will outline how I see AbbVie putting the Humira LOE firmly behind it, and driving the high single digit percentage annual growth management has promised. AbbVie stock forecast 2022 - 2025 - 2030 with analysis AbbVie stock stood at $162.110000610352 on 2022-03-31. forecast for 2023 is $159.42, forecast for 2024 is $156.65, forecast for 2025 is $139.68, forecast for 2026 is $124.48, What that means is, essentially it will be on formulary with biosimilars, but there won't be any difference between the biosimilar and Humira from a co-pay standpoint or any kind of a step editing. The company officially IPOd on January 2, 2013; contrary to criticisms, the move was solely to protect the parent company from expiring patents. Payout ratios above 75% are not desirable because they may not be sustainable. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. GSK Free Cash Flow Forecast for 2023 - 2025 - 2030. The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. AbbVie's Q2'22 earnings threw up some positives and negatives for investors to contemplate. Over the next nine years, experts believe that GSK's Free Cash Flow will grow at a rate of 1.98%. 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". The fact that my own forecasts are less ambitious than management's reflects the fact I have not introduced new products into my forecasts, and it will be interesting to see how management performs on that front as AbbVie has not really had to have a string pipeline while Humira has delivered such dominance in the auto-immune markets. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential. The companys operations span 20 countries, treating more than 60 million people and 40 conditions annually. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. And never invest or trade money you cannot afford to lose. 16 analysts have issued 12-month price targets for AbbVie's shares. 67.71% of the stock of AbbVie is held by institutions. If signs point to that happening I will likely be revising my target price upwards again, but I am playing it more conservative as nobody truly knows the scale of losses after the Humira LOE. The material provided on this website is for information purposes only and should not be understood as an investment advice. 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. I'll also share some a forward income statement and discounted cash flow analysis that suggests the present value of AbbVie shares ought to trade as high as $176, implying that shares are presently discounted by as much as 18% to their true worth. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. View institutional ownership trends. Management has previously stated that it expects total revenues to decline in 2023 following the Humira LOE, followed by a return to growth in 2024, and a "high single digit CAGR" maintained through the remainder of the decade. 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. 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. As per management's guidance, I am modelling for $5.7bn of revenues in 2023, with growth beginning to accelerate substantially from 2025 / 26 onwards. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. Remember that past performance is not a guarantee of future results and you should never invest more money than you can afford to lose. Without the additional patents - >130 in total - Humira would have lost its market exclusivity in 2016, but having eventually lost protection in Europe, which has resulted in a sales decline from $6.3bn in 2018, to ~$2.7bn in 2022, Humira will finally face generic competition in the US from the beginning of this year. Only you can design whether Abbvie stock is the right investment for you. Myelofibrosis has proved to be a tricky indication for drug developers and there are no wholly satisfactory solutions on the market at present, therefore if approved I would expect Navitoclax - a drug that AbbVie has been working on for some time - to generate a couple of billion dollars in peak sales. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. And with a dividend yield of 4.9%, AbbVie is quite attractive for investors yearning for . All rights reserved. In 2022, Humira revenues will likely reach $21bn, which will see the drug overtake cholesterol-lowering Lipitor as the best-selling drug of all-time. The company provided earnings per share (EPS) guidance of $10.70- for the period. Top institutional shareholders include Geode Capital Management LLC (1.91%), Morgan Stanley (1.79%), Moneta Group Investment Advisors LLC (1.65%), Price T Rowe Associates Inc. MD (1.15%), Norges Bank (1.06%) and Legal & General Group Plc (0.66%). This could present more profit potential for drugmakers as well as investors. AbbVie has been working hard to ensure the 2 drugs it has developed to replace Humira - Skyrizi, which inhibits the pro-inflammatory cytokine IL23, and Rinvoq, a Janus Kinase (enzymes involved in immune cell function) inhibitor - are winning approvals and growing sales in Humira's markets. Our first quarter results highlight the diversity of our portfolio and include compelling performance from key growth drivers Skyrizi, Rinvoq, Aesthetics and Neuroscience. Is this happening to you frequently? $163.64. In general, it is important to pay attention to trends, both in the overall market and in the specific sector that a company is in. Abbvie stock price has put up an impressive performance in 2022. Identify stocks that meet your criteria using seven unique stock screeners. Skyrizi has also been approved to treat Crohn's Disease, an added bonus and another multi-billion dollar market. psoriatic arthritis at a lower dose, again with a comparable safety profile, and has also won approval in a field where Humira has not, namely Atopic Dermatitis. I hope to see you there. 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. 580 employees have rated AbbVie Chief Executive Officer Richard A. Gonzalez on Glassdoor.com. 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 had recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi last year. The company has a robust pipeline of new products that are in some stage of clinical trials. Note that analysts ABBV stock forecasts can be wrong. This figure could eventually end up substantially larger - according to Gonzalez: We've begun to see some very exciting data from several solid tumor programs, including our anti-GARP antibody ABBV-151, and our PTK7 ADC, ABBV-647. Among the many avenues of research and innovation are the advancement of precision medicine or pMedicine. on the strength of its future rather than present portfolio. The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. Most stock quote data provided by BATS. All Rights Reserved. There has been a raft of price-moving news for Abbvie, which may positively affect the stock price. The dividend payout ratio of AbbVie is 89.56%. . To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. I have no business relationship with any company whose stock is mentioned in this article. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? The risks associated with aesthetics are that the industry can be severely buffeted by economic headwinds, as these products are more consumer focused and are often considered an unnecessary expenditure in times of hardship. 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. What other stocks do shareholders of AbbVie own? (AbbVie JPM Healthcare conference presentation). This year is off to a strong start. The major market events for the week ahead right in your inbox. These products are not suitable for everyone and you should therefore consider your objectives, financial situation, needs and experience with these products before investing in them. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. Based on earnings estimates, ABBV will have a dividend payout ratio of 54.11% next year. The stock projection varied from the low price target of $135 to the high of $200. AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com GB 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. Insiders that own company stock include Azita Saleki-Gerhardt, Brian L Durkin, Carlos Alban, Carrie C Strom, Carrie C Strom, Elaine K Sorg, Henry O Gosebruch, Jeffrey Ryan Stewart, Laura J Schumacher, Michael Severino, Perry C Siatis, Richard A Gonzalez, Robert A Michael, Roxanne S Austin, Scott T Reents, Timothy J Richmond and Timothy J Richmond. AbbVie Inc. (NYSE:ABBV) posted its earnings results on Thursday, February, 9th. The majority of the biosimilar (more sophisticated versions of generic drugs) imitations of Humira that will contest for market share with the original will launch around the middle of 2023, including versions developed by Pfizer (PFE), Boehringer Ingelheim, Organon (OGN), Biocon, Coherus Biosciences (CHRS) and Sandoz, whilst Amgen's (AMGN) Amjevita is permitted to launch in January. This would represent an increase of 1.78%. If you rely on the information on this page then you do so entirely on your own risk. What is ABBV's Earnings Per Share (EPS) forecast for 2023-2025? Morningstar: 2019 Morningstar, Inc. All Rights Reserved. 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. Payout ratios above 75% are not desirable because they may not be sustainable. Move your mouse over a quarter or year to see how estimates have changed over time. During the same quarter in the prior year, the firm posted $3.31 EPS. By creating a free account, you agree to our, In Britain, warm hubs emerge to beat soaring energy costs, In Chicago, adapting electric buses to winters challenges, Global race to boost electric vehicle range in cold weather, Ukraine ally Kallas fights for reelection in Estonia vote, Paid express lanes grow more popular in once-reluctant South, Pot vote has Oklahoma hungry to rake in green from Texas, Home Depot Stock Earnings Slide, Long Term Value Still There, AbbVie Stock Still a Solid Buy Despite Challenges, Chief Financial Officer & Executive Vice President, BREAKING: Tiny biotech successfully treats blindness, Fed's Shocking New Plan to Control Your Money. (NYSE: ABBV) Abbvie's current Earnings Per Share (EPS) is $6.65. Is this happening to you frequently? That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. It had an upside potential of 4.76%, based on the closing price of $152.49 on 29 June. The division delivered >$1.65bn in sales in Q2'22, up >15% year-on-year, and with Vraylar, Ubrelvy and possibly Qulipta all earmarked for blockbuster sales - $4bn in the case of Vraylar - my forecasting suggests this division could double in size by 2030, from ~$6.6bn revenues generated in FY22, to >$13.5bn by 2030. The P/E ratio of AbbVie is 23.61, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 126.03. AbbVie Stock Forecast 03-06-2023. Investors do not seem to be taking the bait, however, as AbbVie's share price has slipped by >7% across the past month, and >5% across the past 5 days. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. Currently, the company has a "stable" rating, but that must be maintained or investors will perceive the company as unsafe to invest in and that will drag the share price down rapidly. I haven't included Epcoritamab sales in my forecasts this time, but I hope to adjust the table before Q3'22 results are announced. In the past three months, AbbVie insiders have sold more of their company's stock than they have bought. AbbVie passed that onto its 2022 guidance. AbbVie, like its parent Abbot Laboratories, is a well-established dividend growth stock. Always do your own research on a stocks price performance and predictions before making an investment. 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. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. We continue to anticipate a clearer path to strong sales growth in 2025 with high-single-digit compounded annual growth rate to the end of this decade. One share of ABBV stock can currently be purchased for approximately $156.06. High institutional ownership can be a signal of strong market trust in this company. 1 dividend stock for a LIFETIME of income. I have no business relationship with any company whose stock is mentioned in this article. Please. In my opinion, based on the current portfolio, AbbVie shares look undervalued below $160, but the upside above that price is limited, unless management is able to commercialize more products between now and the end of the decade, in order to achieve what looks like a very ambitious goal in driving high-single-digit revenue growth in the second half of this decade. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). 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. Get daily stock ideas from top-performing Wall Street analysts. However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. On average, they predict the company's stock price to reach $161.12 in the next year. 2022 Cable News Network. 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. 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. The average price target represents a 6.33% change from the last price of $153.90. AbbVie has fought off patent challenges against Humira for years longer than expected, and despite losing exclusivity in Europe in 2020, a series of price hikes and market dominance in the US in indications such as Rheumatoid Arthritis ("RA"), Psoriatic Arthritis ("PsA"), Crohn's Disease ("CD"), and Ulcerative Colitis ("UC") - have enabled the drug's sales revenues to keep growing. 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. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth.
