This indicates that AbbVie will be able to sustain or increase its dividend. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. In the U.S. dermatology segment, where approximately 30% of patients exhibit both skin and joint involvement, Skyrizi is already achieving an in-play patient share of nearly 20%. AbbVie Inc. (NYSE:ABBV) posted its earnings results on Thursday, February, 9th. The company earns $11.84 billion in net income (profit) each year or $6.61 on an earnings per share basis. 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. 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. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. Better Buy: AbbVie vs. Johnson & Johnson | The Motley Fool Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. 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 this article we take a closer look at the Abbvie stock forecast, after analysing the firms latest earnings, price moving news and analyst comments. 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. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. It pays a dividend yield of 3.83%, putting its dividend yield in the top 25% of dividend-paying stocks. AbbVie projected sales - immunology (my forecasts and assumptions). AbbVie product revenues by quarter and year since FY20. The difference between trading assets and CFDs. As we look beyond 2025, we expect combined sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira, which was more than $21 billion. I am not receiving compensation for it (other than from Seeking Alpha). There are currently 9 hold ratings and 7 buy ratings for the stock. In my model I have then reduced revenues by 20% between 2024 - 2026, and then by 10% per annum between 2027 - 2030. According to the Abbvie stock technical analysis, as of 30 June, the Relative Strength Index (RSI) was pointing to neutral at 62.18. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. Aurora Cannabis Stock Forecast for 2023 - 2025 - 2030 Skyrizi has also been approved to treat Crohn's Disease, an added bonus and another multi-billion dollar market. I write about Biotech, Pharma and Healthcare stocks and share investment tips. CFDs are complex leveraged instruments and come with a high risk of losing money. Projections are based on making fundamental and technical studies of the ABBV stock price performance. Discovery Company. AbbVie trades on the New York Stock Exchange (NYSE) under the ticker symbol "ABBV.". You should do your own research and never invest money you cannot afford to lose. Revance Therapeutics gapped up 54.34% on January 9, and built upon those gains in February. Payout ratios above 75% are not desirable because they may not be sustainable. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. (AbbVie data). 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. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions). According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. This suggests a possible upside of 3.8% from the stock's current price. Identify stocks that meet your criteria using seven unique stock screeners. It now expects full-year profit in the range of $13.92-$14.12 a share. All rights reserved. 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. Among its many positions is sustainable operations so it can deliver life-changing therapies to those who need them most. AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). Receive regular, detailed analysis focused on biotech and healthcare stocks. 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. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. The average price target is $163.64 with a high forecast of $190.00 and a low forecast of $133.00. Bhd., AbbVie Sp. Pessimistic target level: 151.42 Optimistic target level: 154.48 ABBV (ABBV) Monthly Stock Prediction for 2023 Full forecast for 2023 AbbVie forecast for this year 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". After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. AbbVie Stock Crumbles On Mixed Earnings, Slashes 2022 Earnings Outlook 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. You should never invest money you cannot afford to lose. 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. 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. 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. 2022 Cable News Network. 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. Within the oncology division sales of Imbruvica fell 17% year-on-year. First of all, as shown in the table above I forecast product sales out to 2030. I am not receiving compensation for it (other than from Seeking Alpha). Only 0.08% of the stock of AbbVie is held by insiders. That reflects uncertainty about what the future holds for AbbVie. AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com GB As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. With Skyrizi and Rinviq - two assets developed in-house - performing so well, however, perhaps we should give management the benefit of the doubt. Is this happening to you frequently? 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. ABBV has several positive factors pushing its price performance. 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. The shining star in the aesthetics business is Botox, which increased sales by 45% year over year to $477 million in the first quarter of 2021. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. In this post I model AbbVie product sales to 2030 - including pipeline assets - and use discounted cash flow analysis to calculate a present day share price target. However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. 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. Forecasts shouldnt be used as a substitute for your own research. 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. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? AbbVie Stock Forecast 2023 - 2025 - 2030 | StockForecast.com 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. Always conduct your own due diligence before investing. Sales are expected to recover in H2'22, however, and forecast year-on-year growth. The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. 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. High institutional ownership can be a signal of strong market trust in this company. 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. AbbVie - ABBV Stock Forecast, Price & News - MarketBeat 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. PEG Ratios above 1 indicate that a company could be overvalued. It's hard to argue against Skyrizi and Rinvoq's performance to date, however, and with the total addressable market across all immunology indications likely well in excess of $100bn, I feel fairly comfortable that AbbVie can grow this division's revenues even as the world's biggest ever selling drug exits stage left. $163.64. Among the many avenues of research and innovation are the advancement of precision medicine or pMedicine. The average price target represents a 6.33% change from the last price of $153.90. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. On average, they predict the company's stock price to reach $161.12 in the next year. 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. 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. Migraine therapy Ubrelvy is a future blockbuster, Gonzalez believes, as is Qulipta, in the same indication. When looking for ABBV stock forecasts, it's important to bear in mind that analysts' forecasts can be wrong. As such, forecasting stock prices is more of an art than a science. My No. Johnson & Johnson is rushing toward a patent cliff but a new shelf offering registration suggests itis gearing up for acquisitions. 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. 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. AbbVie had a net margin of 20.39% and a trailing twelve-month return on equity of 154.52%. 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. 8.05% 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. What is the dividend yield for AbbVie? The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. Investors are already flocking there for a chance at 1,000%+ returns. The official website for the company is www.abbvie.com. 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. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. The lowest target is $136.35 and the highest is $210. See what's happening in the market right now with MarketBeat's real-time news feed. 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. I have no business relationship with any company whose stock is mentioned in this article. AbbVie's Dividend and Valuation. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . . As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. 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). 16 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for AbbVie in the last year. And with a dividend yield of 4.9%, AbbVie is quite attractive for investors yearning for . Is AbbVie Stock A Buy Or A Sell With Humira Rivals Looming? RHHBY vs. ABBV: Which Stock Is the Better Value Option? Zscaler, Inc Plummets, Is It Time To Buy The Dip? For the next eight years, the forecast is for Free Cash Flow to grow by . Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. 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. During the same quarter in the prior year, the firm posted $3.31 EPS. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. AbbVie saw a increase in short interest in February. 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. I believe AbbVie is likely 15 - 20% undervalued at current price. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. AbbVie's stock was trading at $161.61 on January 1st, 2023. Export data to Excel for your own analysis. Refer to our. ABBV - Abbvie Inc Forecast - CNNMoney.com - CNN Business (NYSE: ABBV) Abbvie's current Earnings Per Share (EPS) is $6.65. AbbVie (ABBV) stock Forecast for 2021 - 2025 - PandaForecast.com 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. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. 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. 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". To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. American Consumer News, LLC dba MarketBeat 2010-2023. Johnson & Johnson Stock Forecast 2023 - 2025 - 2030
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