Their ABBV share price forecasts range from $140.00 to $200.00. In most cases, trials are underway for multiple indications, including some therapies that have already been approved for 1 or more conditions. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. Disclaimer. Neuroscience is one of AbbVie's most intriguing divisions and perhaps the hardest to model. Projections are based on making fundamental and technical studies of the ABBV stock price performance. High institutional ownership can be a signal of strong market trust in this company. For the next year, analysts predict that Free Cash Flow will reach 6.91B - an increase of 1.94%. 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. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . 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. Read our dividend analysis for ABBV. 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 (ABBV) stock price prediction is 262.23586323343 USD. The Abbvie (JPM Healthcare conference presentation), Skyrizi's performance has been particularly eye-catching. Kateryna Onyshchuk/iStock via Getty Images. After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. (my tables and forecasting). I write about Biotech, Pharma and Healthcare stocks and share investment tips. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). 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. The company earns $11.84 billion in net income (profit) each year or $6.61 on an earnings per share basis. 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. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? 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". AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). Morningstar: 2019 Morningstar, Inc. All Rights Reserved. Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. AbbVie Inc. (NYSE:ABBV) posted its earnings results on Thursday, February, 9th. Shares of ABBV stock can be purchased through any online brokerage account. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Is this happening to you frequently? The total revenue in 2021 was $56.20 billion with a 31% operating margin. 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. (AbbVie data). In the last four years, Johnson & Johnson's Free Cash Flow has fallen from $18.53B to $17.00B - a 8.28% decrease. On 14 January 2022, the FDA approved Abbvies arthritis treatment drug, Rinvoq (upadacitinib), for the treatment of adults with moderately to severely active ulcerative colitis. Sign in to your free account to enjoy all that MarketBeat has to offer. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. AbbVie: Modelling The Post Humira Bull Case To 2030 (ABBV) AbbVie Inc. (ABBV) Analyst Ratings, Estimates & Forecasts - Yahoo Finance 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. Your current $100 investment may be up to $188.28 in 2028. 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 official website for the company is www.abbvie.com. The Abbvie stock forecast for 2025 had the price at $259.018. 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. 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. 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. Only you can design whether Abbvie stock is the right investment for you. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Partnerships are with universities, medical facilities, research organizations and other pharmaceutical companies. AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. The dividend payout ratio of AbbVie is 89.56%. 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. On average, analysts rate AbbVie stock as a buy. 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. How do I arrive at my share price target? on the strength of its future rather than present portfolio. 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. 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. Net earnings also saw a steep rise to $4.49bn from $3.55bn, while net revenue jumped to $13.54bn from 13.01bn. AbbVie Stock Crumbles On Mixed Earnings, Slashes 2022 Earnings Outlook In the last two years, Aurora Cannabis's Revenue has fallen from C$245.54M to C$245.25M - a 0.12% decrease. Retail sales were up but so was inflation which meant more volatility for stocks. 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. outlook for a company that is still only 10 years old and is about to feel the impact of a loss of patent protection for its mega-blockbuster auto-immune drug Humira, which made $20.7bn of sales for the company in FY21, representing 37% of total revenues generated. The company is focused on research and has a number of collaborations and partnerships to that end. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. Skyrizi is a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialisation globally. All rights reserved. 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. 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. 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. Wallet Investor suggested that the price could hit $300.386 in June 2027. The company provided earnings per share (EPS) guidance of $10.70- for the period. Although Wallet Investor did not provide targets for 2030, its longer-term Abbvie stock prediction expected the price to hit $300.386 in June 2027. The five-year dividend growth rate is just below 18%. How to Decide, Taiwan Semiconductor Manufacturing Expanding in the West, One Way to Earn More From Dividend Stocks, How to Choose a Winning Dividend Investing Strategy, 3 Industries Leading the Stock Market Rebound, Oil Tankers Boost Dividends, See Continued Robust Business In '23. 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). The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. After 2022 Humira's row is shaded yellow to signify patent expiry. 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. Build a CFD portfolio with your favourite companies. 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. Since its 2013 separation from Abbott Laboratories (ABT 1.78%), AbbVie's stock has grown more than 160%. Shares are consolidating with a buy. The average analyst rating for AbbVie stock from 34 stock analysts is "Buy". View which stocks are hot on social media with MarketBeat's trending stocks report. 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. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. (ABBV) AbbVie Stock Predictions from the Leading Provider of Short and Long Term Stock Price Forecasts. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. I wrote this article myself, and it expresses my own opinions. This indicates that AbbVie will be able to sustain or increase its dividend. I'm on twitter @edmundingham. About the AbbVie, Inc. stock forecast. Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. Data from two Phase 3 induction studies and one maintenance study supported the approval. Let's begin our analysis with the immunology division. 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. For full year 2022, Abbvie predicted the adjusted diluted EPS guidance range at $14.00 to $14.20 and $13.92 to $14.12. One share of ABBV stock can currently be purchased for approximately $156.06. Is AbbVie Stock A Buy Or A Sell With Humira Rivals Looming? 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. Currently, AbbVie sees a significantly higher portion of every dollar end up as cash to do with what they please. Aurora Cannabis Stock Forecast for 2023 - 2025 - 2030 When looking for ABBV stock forecasts, it's important to bear in mind that analysts' forecasts can be wrong. For the next nine years, the forecast is for Revenue to grow by 3.57%. I am not receiving compensation for it (other than from Seeking Alpha). 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. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: Move your mouse over a quarter or year to see how estimates have changed over time. AbbVie's stock is owned by many different institutional and retail investors. AbbVie's Q2'22 earnings threw up some positives and negatives for investors to contemplate. Capital Com is an execution-only service provider. 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. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. AbbVie Inc. is a US-based biopharma company with global operations. 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. The dividend payout ratio is 89.56%. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. . I have no business relationship with any company whose stock is mentioned in this article. AbbVie could be the biggest global Pharma by revenue generation in 2028. You should do your own research and never invest money you cannot afford to lose. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. The average ABBVIE INC stock forecast 2023 represents a 1.86% increase from the last price of $153.729995727539. The company reported its first revenue for Botox competitor Daxxify. 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. Furthermore, it seems sales of Lupron and Synthroid have joined the "All Other" section, which has generated $2.2bn of revenues in the first half of 2022, versus $1.5bn in the first half of 2021. Slide from JPM Conference 2022 presentation. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. 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. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. American Consumer News, LLC dba MarketBeat 2010-2023. Receive ABBV Stock News and Ratings via Email. Nineteen analysts predict that AbbVie's share price will increase in the coming year, reaching $165.00. This indicates that the company will be able to sustain or increase its dividend. 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. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ABBV, but not buy additional shares or sell existing shares. 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. AbbVie Stock Forecast 03-06-2023. (NYSE: ABBV) Abbvie's current Earnings Per Share (EPS) is $6.65. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. Over the years, AbbView Inc. has made numerous acquisitions. 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. The eye-disease markets are very large - Regeneron's Eylea is a >$7bn per annum selling drug and AMD markets are >$20bn in size. AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com Within the oncology division sales of Imbruvica fell 17% year-on-year. 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. Not only do these companies pay handsome dividends, they typically grow revenues every year and generate wide profit margins which leads to share price upside. 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. 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. Shareholders of record on Friday, April 14th will be given a dividend of $1.48 per share on Monday, May 15th. 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. 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. Skyrizi has also been approved to treat Crohn's Disease, an added bonus and another multi-billion dollar market. AbbVie Stock: Still A Solid Buy After Modeling Sales To 2030 How often does AbbVie pay dividends? This year is off to a strong start. AbbVie is a leading dividend payer. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. After a Blowout Quarter, Is AbbVie Stock a Buy? | The Motley Fool - Nasdaq 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. It pays a dividend yield of 3.83%, putting its dividend yield in the top 25% of dividend-paying stocks. The analysts 12-month consensus ABBV stock price target was $159.75. (AbbVie JPM Healthcare conference presentation). Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. First we can take a quick look at what a forward income statement for AbbVie might look like to 2030. 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. 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. 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. Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. Factset: FactSet Research Systems Inc.2019. Among the more notable are ImmuVen, Pharamcyclics and Allergan plc. 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. In this post, I will discuss Q2'22 results, as well as the long-term outlook for AbbVie based on the latest information, goals, risks, and financial modeling analysis, to try to establish a target price for AbbVie stock. AbbVie's mailing address is 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. Johnson & Johnson is rushing toward a patent cliff but a new shelf offering registration suggests itis gearing up for acquisitions. The company employs 50,000 workers across the globe. 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. I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. ABBV Stock Forecast Price Target for 2024 TradingView I haven't included Epcoritamab sales in my forecasts this time, but I hope to adjust the table before Q3'22 results are announced. The median estimate represents a +5.72% increase from the last price of 156.07. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. 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. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. Refer to our. 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. Our momentum combined with ramping contributions from new products and new indications will drive accelerating revenue and EPS growth through the rest of the year., ABBV has done very well to add to its impressive gains from the past couple of years. AbbVie has a P/B Ratio of 15.97. At their peak, according to a slide from AbbVie's presentation at the JPMorgan (JPM), these 2 drugs are expected to generate more revenues than Humira at its peak. When looking for ABBV stock forecasts, its important to bear in mind that analysts forecasts can be wrong. Read the conference call transcript. Teliso V is an antibody drug conjugate and a c-Met inhibitor. My No. You should never invest money you cannot afford to lose. A Warner Bros. 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. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. Always do your own research on a stocks price performance and predictions before making an investment. What is a Good Dividend Yield? Based on our forecasts, a long-term increase is expected, the "ABBV" stock price prognosis for 2028-02-23 is 287.522 USD. 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.