AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. 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. In the last four years, Johnson & Johnson's Free Cash Flow has fallen from $18.53B to $17.00B - a 8.28% decrease. Always conduct your own due diligence before investing. The company has a robust pipeline of new products that are in some stage of clinical trials. I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. Today, AbbVie operates as a diversified multi-national pharmaceutical company with a patient-centric approach to research. 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". As a result I have dropped Imbruvica revenues to just over $3.5bn in 2022 and modelled for a CAGR growth of just 1.5% between then and 2030. AbbVie Stock: ABBV Overview and Dividend Potential, Wall Street Sees 23% Upside In Revance, Maker Of Botox Competitor (ABBV), Analyst Confidence in Eli Lilly Boosted by Product Pipeline (ABBV), Johnson & Johnson: Taking The Bull By The Horns? 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. Excluding items, AbbVie earned $3.31 per share, beating estimates of $3.29 . AbbVie stock is one of the most well-known pharmaceutical companies. The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. 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. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. Find the latest AbbVie Inc. (ABBV) stock quote, history, news and other vital information to help you with your stock trading and investing. In the past three months, AbbVie insiders have sold more of their company's stock than they have bought. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. on the strength of its future rather than present portfolio. The dividend payout ratio is 89.56%. 164.71 0.00 0.00%. 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. Finally, eye-care - another division inherited from Allergan - has been performing well for AbbVie although I am not expecting particularly strong growth from the current product portfolio. It should be noted however that, with ~$12bn near-term debt falling due, and long-term debt of ~$61bn - most of it due to the $66bn acquisition of Allergan, completed in 2020, AbbVie has some hefty interest expense payments to make - $15bn between 2022 and 2027, I estimate, and the level of debt makes it tough for the company to invest in M&A deals. Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. Is this happening to you frequently? I am not receiving compensation for it (other than from Seeking Alpha). The average price target is $163.64 with a high forecast of $190.00 and a low forecast of $133.00. Abbvie has a strong pipeline of projects ahead, and has recently received US FDA approval of its ulcerative colitis drug Rinvoq. Only you can design whether Abbvie stock is the right investment for you. (my table and forecasts). AbbVie, like its parent Abbot Laboratories, is a well-established dividend growth stock. AbbVie declared a quarterly dividend on Thursday, February 16th. The AbbVie of today has 5 thriving divisions - Immunology, Oncology, Neuroscience, Aesthetics, and Eye Care - with the latter 3 divisions acquired from Allergan as part of AbbVie's $63bn takeover of that company. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. Read our dividend analysis for ABBV. ABBV has several positive factors pushing its price performance. The analysts 12-month consensus ABBV stock price target was $159.75. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. It now expects full-year profit in the range of $13.92-$14.12 a share. Always do your own research on a stocks price performance and predictions before making an investment. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. 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. Year-to-date, the stock was up slightly more than 12% while benchmark global indices have all fallen sharply amid surging inflation, interest rate hikes and slowdown worries. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. Investors are already flocking there for a chance at 1,000%+ returns. 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. Our first quarter results highlight the diversity of our portfolio and include compelling performance from key growth drivers Skyrizi, Rinvoq, Aesthetics and Neuroscience. It had an upside potential of 4.76%, based on the closing price of $152.49 on 29 June. Although the company has admitted that 2023 earnings will likely be down in 2022 - guidance for last year is for earnings per share ("EPS') of $13.84 - $13.88 on an adjusted diluted basis, versus $12.7 in 2021 - Gonzalez and his team were making some bold promises to investors at this year's JP Morgan Healthcare conference. Eli Lilly has long been a reliable stock, but with the company's impressive product pipeline, the stock could hold significant potential in the near term. On average, they predict the company's stock price to reach $161.12 in the next year. 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. . 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. AbbVie's stock was trading at $161.61 on January 1st, 2023. AbbVie product revenue forecasts to 2030. Over the next nine years, experts believe that GSK's Free Cash Flow will grow at a rate of 1.98%. This would represent an increase of 1.78%. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. Partnerships are with universities, medical facilities, research organizations and other pharmaceutical companies. 1 dividend stock for a LIFETIME of income. For full year 2022, Abbvie predicted the adjusted diluted EPS guidance range at $14.00 to $14.20 and $13.92 to $14.12. The first is Epcoritamab, a CD3xCD20 bispecific for B-cell malignancies, including DLBCL and follicular lymphoma, which AbbVie expects will be approved this year. In-depth profiles and analysis for 20,000 public companies. Shares are consolidating with a buy. The five-year dividend growth rate is just below 18%. 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. The company's average rating score is 2.44, and is based on 7 buy ratings, 9 hold ratings, and no sell ratings. Noting the stellar earnings reported by the firm in the first quarter, Richard A. Gonzalez, chairman and CEO of AbbVie, said: An overview of the companys net revenue in Q1 shows a major portion of revenue came from its immunology portfolio, which brought in $6.14bn. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. AbbVie had a net margin of 20.39% and a trailing twelve-month return on equity of 154.52%. 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. AbbVie has said it expects to generate high-single-digit CAGR growth from 2025 to the end of the decade after revenues fall in 2023 due to Humira LOE. The CEO, speaking at a fireside chat during the conference, commented: we remain well-positioned to absorb the impact from the Humira LOE and quickly return to strong growth starting in 2025. 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. Enjoy your holiday weekend and catch up on our most read stories this week. 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. The Abbvie stock forecast for 2025 had the price at $259.018. 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. 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. Their ABBV share price forecasts range from $140.00 to $200.00. Forecasts shouldnt be used as a substitute for your own research. 67.71% of the stock of AbbVie is held by institutions. Other profitable therapies include but are not limited to SKYRIZI for psoriasis, RINVOQ for rheumatoid arthritis and IMBRUVICA and VENCLEXTA for chronic leukemia conditions. Payout ratios above 75% are not desirable because they may not be sustainable. However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. First of all, as shown in the table above I forecast product sales out to 2030. 2022 Cable News Network. 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. AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). The above table shows quarterly and annual product revenues going back to FY20, whilst the last 4 columns show revenue growth percentage between FY20 and FY21, then revenue growth between Q2'21 and Q2'22, the sequential (quarter on quarter) growth, followed by product sales as a percentage of revenues. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Identify stocks that meet your criteria using seven unique stock screeners. Let's begin our analysis with the immunology division. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. The obvious advantages of a "one and done" permanent cure make them potentially very lucrative therapies. AbbVie (NYSE:ABBV) has a market capitalization of $276.13 billion and generates $58.05 billion in revenue each year. Remember that past performance is not a guarantee of future results and you should never invest more money than you can afford to lose. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. I have no business relationship with any company whose stock is mentioned in this article. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. For the next nine years, the forecast is for Revenue to grow by 3.57%. All rights reserved. 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. And never invest or trade money you cannot afford to lose. 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. 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. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . 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. All Rights Reserved. This indicates that the company will be able to sustain or increase its dividend. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . Within the oncology division sales of Imbruvica fell 17% year-on-year. All rights reserved. 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. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. AbbVie's Dividend and Valuation. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. One share of ABBV stock can currently be purchased for approximately $156.06. 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. 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. I'm on twitter @edmundingham. The Abbvie stock forecast for 2025 had the price at $259.018. (844) 978-6257. There is an element of risk to that as clinical trial failures are common, even for a giant like AbbVie, and even CEO Gonzalez may be forced to backtrack on some of his blockbuster sales projections. 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. approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). These are Immunology, Oncology, Neurology, Virology and Eye Care. 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%. This suggests a possible upside of 3.2% from the stock's current price. AbbVie Inc. is a US-based biopharma company with global operations. The average price target represents a 6.33% change from the last price of $153.90. Duodopa is approved for Parkinson's Disease but Gonzalez believes that the subcutaneous non-surgical delivery system of candidate ABBV951 can "significantly expand the patient population currently addressed by Duopa", and sees the drug as yet another future blockbuster. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. That led to an overall 6% year-on-year gain of 6%, and a 13% sequential gain. Having so much debt in a prevailing inflationary environment is also unattractive. One of the few pain points AbbVie experienced during a year of portfolio wide growth in 2022 was the decline in the revenue contribution from Imbruvica, approved to treat various types of lymphoma. It is in business to discover, develop, manufacture and market pharmaceuticals globally but in a way that best serves the needs of patients and the global community. I wrote this article myself, and it expresses my own opinions. Real-time analyst ratings, insider transactions, earnings data, and more. The company didn't offer a . Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. The 21 analysts offering 12-month price forecasts for Abbvie Inc have a median target of 165.00, with a high estimate of 200.00 and a low estimate of 135.00. Data from two Phase 3 induction studies and one maintenance study supported the approval. As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ 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. Allergan plc was an Ireland-based pharmaceutical company focused on health-oriented aesthetic products and is the owner of Botox. Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. AbbVie has a PEG Ratio of 3.51. Multidrug Resistant Bacteria Treatment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2030) Published: March 2, 2023 at 2:55 a.m. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. Read the conference call transcript. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. It is important to do your own research, and remember that your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. 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. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. Although management reminded analysts that "Imbruvica continues to be the total market share leader across all lines of therapy in CLL", the outlook does not look especially promising. Both Leqembi and Donanemab are potential $5bn - $10bn selling assets, but both drugs still have safety questions to answer and not certain to be made eligible for reimbursement. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. 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. 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. I hope to see you there. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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). 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. And it couldnt be more wrong! Gonzalez has vigorously defended AbbVie against accusations of price manipulation, but the company is renowned for pushing drug prices up annually and should its powerful lobbies become less powerful in the face of external pressure, once again, the sector will start to look unattractive for investors. This rating has held steady since February, when it was unchanged from a Buy rating.Move your mouse over pastmonths for detail. 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. This means that . Richard A. Gonzalez has an approval rating of 88% among the company's employees. In other words, no Humira, no problem! Ltd., AbbVie Overseas S. r.l., AbbVie Oy, AbbVie Participaes Ltda., AbbVie Pharmaceutical Trading (Shanghai) Co. Ltd., AbbVie Pharmaceuticals B.V., AbbVie Pharmaceuticals GmbH, AbbVie Pharmaceuticals LLC, AbbVie Pharmaceuticals SCA., AbbVie Pharmaceuticals Societe Anonyme, AbbVie Polska Sp. The lowest target is $136.35 and the highest is $210. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. These are mostly related to the US Food and Drug Administrations (FDA) approval of Abbvies drug Rinvoq for ulcerative colitis and positive top-line results from the Phase 3 induction study U-EXCEL. I have no business relationship with any company whose stock is mentioned in this article. Abbvies haematologic oncology portfolio, neuroscience portfolio and aesthetics portfolio reported net revenues of $1.65bn, $1.49bn and $1.37bn, respectively. The median. 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 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. The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. 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. Please log in to your account or sign up in order to add this asset to your watchlist. Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. Factset: FactSet Research Systems Inc.2019. I am not receiving compensation for it (other than from Seeking Alpha). The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. AbbVie passed that onto its 2022 guidance. 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. CFDs are complex leveraged instruments and come with a high risk of losing money. The major market events for the week ahead right in your inbox. Please. I will conclude this analysis by stating that, based on all available information, market headwinds and tailwinds, competitors, and opportunities via its products and pipeline, I still consider AbbVie to be a strong investment opportunity. Export data to Excel for your own analysis. The Large Pharma sector performed remarkably well in 2022, with the "Big 8" delivering an average ~15% gain whilst the S&P 500 index fell in value, and the biotech sector was in turmoil. I wrote this article myself, and it expresses my own opinions. Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. The company reported its first revenue for Botox competitor Daxxify. 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. Finally, AbbVie was able to raise its financial . Ever since its split from Abbott Laboratories (ABT) in 2012 AbbVie (NYSE:ABBV) has delivered strong returns for investors - its stock price having risen overall from $30, to $149 per share at the time of writing - trading down slightly from its all-time high of >$160 achieved in early December last year. As well as the stock price gains AbbVie has always paid a handsome dividend - which has increased by 270% since the Pharma's inception, currently paying $1.48 per quarter, for a current yield of 4% - the highest in the large Pharmaceutical sector. I have speculatively assigned peak sales of $2bn, although it should be noted that success here is far from guaranteed, although if AbbVie did succeed with ABBV916 sales could be 2 or 3x higher than my forecast.