ABBV closed at $152.49 on 29 June, which was above its 200-day moving average (MA) of 136.42, indicating a bullish signal for the stocks price movement ahead, according to data from TradingView. 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. Build a CFD portfolio with your favourite companies. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. Read our dividend analysis for ABBV. About the AbbVie, Inc. stock forecast. 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. 2022 Cable News Network. 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. Other products such as Mavyret and Creon appear to have many more years of blockbuster sales ahead of them, although it is interesting to note that AbbVie no longer reports revenues from its Women's Health division, and scarcely mentions it. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. On average, analysts rate AbbVie stock as a buy. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. 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. In the last four years, Johnson & Johnson's Free Cash Flow has fallen from $18.53B to $17.00B - a 8.28% decrease. 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. AbbVie has a PEG Ratio of 3.51. 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: 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? Please disable your ad-blocker and refresh. That led to an overall 6% year-on-year gain of 6%, and a 13% sequential gain. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. You should consider whether you understand how CFDs work and can afford the risks. We expect that to happen in 2027 with continued significant growth anticipated in the following years. (ABBV), MarketBeat Week in Review 2/13 - 2/17 (ABBV), The 3 Best Pharma Stocks to Buy for Big Gains in 2023 (ABBV), How Abbott Labs, AbbVie Could Profit on Seizure Drug Formula (ABBV), AbbVie Has a Mixed Outlook After Mixed Earnings, Q4 2022 AdTheorent Holding Company Inc Earnings Call. The companys original winner, Humira, is still the number one revenue source but the portfolio has been greatly expanded. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. I also considered the long-term 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. 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. Based on earnings estimates, AbbVie will have a dividend payout ratio of 54.11% next year. Kateryna Onyshchuk/iStock via Getty Images. The companys operations span 20 countries, treating more than 60 million people and 40 conditions annually. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All rights reserved. What is Richard A. Gonzalez's approval rating as AbbVie's CEO? 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. Real-time analyst ratings, insider transactions, earnings data, and more. American Consumer News, LLC dba MarketBeat 2010-2023. Fawad Razaqzada, market analyst for City Index and FOREX.com, commenting to Capital.com, said: As of 30 June, analyst ratings compiled by MarketBeat shared different price targets for Abbvie stock. AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions). 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. 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. on the strength of its future rather than present portfolio. Fortunately for AbbVie shareholders Gonzalez and his management team have had many more years than expected to prepare for Humira's Loss of Exclusivity ("LOE"), and it has never been the Pharma's ambition to build its business around a single, all-conquering but time-limited drug. 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. I'm on twitter @edmundingham. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. With a 5-year investment, the revenue is expected to be around +88.28%. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. Among the more notable are ImmuVen, Pharamcyclics and Allergan plc. AbbVie product revenue forecasts to 2030. I have no business relationship with any company whose stock is mentioned in this article. 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. It pays a dividend yield of 3.83%, putting its dividend yield in the top 25% of dividend-paying stocks. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. Get short term trading ideas from the MarketBeat Idea Engine. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. 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. 16 analysts have issued 12-month price targets for AbbVie's shares. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? Neuroscience is one of AbbVie's most intriguing divisions and perhaps the hardest to model. Within the oncology division sales of Imbruvica fell 17% year-on-year. Only you can design whether Abbvie stock is the right investment for you. I wrote this article myself, and it expresses my own opinions. The company had recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi last year. 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. Excluding items, AbbVie earned $3.31 per share, beating estimates of $3.29 . 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 company employs 50,000 workers across the globe. 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. 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%. I have been maintaining a revenue forecasting table for AbbVie's products which I have amended based on Q2'22 and H1'22 results, and the slightly downgraded guidance issued for 2022 - management now expects adjusted earnings per share ("EPS") of $13.78 - $13.98, representing growth of 17% at the midpoint. (6.33% Upside) Based on 15 Wall Street analysts offering 12 month price targets for AbbVie in the last 3 months. These are Immunology, Oncology, Neurology, Virology and Eye Care. 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. CNN Sans & 2016 Cable News Network. (my tables and forecasting). AbbVie's mailing address is 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. I wrote this article myself, and it expresses my own opinions. The review period was extended by three months in order for the FDA to review additional data submitted by AbbVie. ABBV Stock Forecast Price Target for 2024 TradingView That same month, the FDA extended the review period for Skyrizi (risankizumab), a treatment drug for moderate to severe Crohns disease in patients aged 16 and older. Should You Buy AbbVie Stock After The Recent 7% Fall? - Forbes Their ABBV share price forecasts range from $140.00 to $200.00. As we can see, sales of Humira are still climbing, with losses in Europe - where revenues fell by 14% to $699m - offset by growth in the US, to $4.7bn, up 10% year-on-year. AbbVie is a leading dividend payer. 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 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. AbbVie has received a consensus rating of Hold. Wallet Investor suggested that the price could hit $300.386 in June 2027. The company earns $11.84 billion in net income (profit) each year or $6.61 on an earnings per share basis. (844) 978-6257. 164.71 0.00 0.00%. Research Reports & Trade Ideas - Yahoo Finance 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. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. AbbVie Inc. is a US-based biopharma company with global operations. I am not receiving compensation for it (other than from Seeking Alpha). Skyrizi - which inhibits the activities of IL-23 - a naturally occurring cytokine that is involved in inflammatory and immune responses - and Rinvoq - a member of the janus kinase inhibitor drug class - fit this profile. 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. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. The company reported its first revenue for Botox competitor Daxxify. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. That is interesting to me as I think it suggests management will need to commercialize more assets if it wants to hit that target. z o.o., AbbVie Productos Farmacuticos Limitada, AbbVie Products LLC, AbbVie Promoo L.da, AbbVie Pte. Please. Ltd., AbbVie Pty Ltd, AbbVie Purchasing LLC, AbbVie Real Estate Management GmbH, AbbVie Research B.V., AbbVie Resources Inc., AbbVie Resources International Inc., AbbVie Respiratory LLC, AbbVie S. de R.L., AbbVie S.A., AbbVie S.A., AbbVie S.A.S., AbbVie S.R.L., AbbVie S.r.l., AbbVie S. r.l., AbbVie SA, AbbVie SAS, AbbVie SIA, AbbVie Sarl, AbbVie Sdn. Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. CFDs are complex leveraged instruments and come with a high risk of losing money. Partnerships are with universities, medical facilities, research organizations and other pharmaceutical companies. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . AbbVie's Dividend and Valuation. I wrote this article myself, and it expresses my own opinions. Investors are already flocking there for a chance at 1,000%+ returns. AbbVie is one of the largest global Pharmaceuticals, with a market cap of >$265bn. Multidrug Resistant Bacteria Treatment Market - MarketWatch In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). 1 dividend stock for a LIFETIME of income. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. AbbVie is led by CEO and Chairman Rick Gonzalez - likely the only Pharma CEO who lacks a college degree - who has successfully defended Humira from generic drug competition by adopting a controversial strategy of continually applying for new patents related to minor changes in manufacturing methods or administration, often referred to as a "patent thicket". 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. Net earnings also saw a steep rise to $4.49bn from $3.55bn, while net revenue jumped to $13.54bn from 13.01bn. Receive regular, detailed analysis focused on biotech and healthcare stocks. 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. For the next eight years, the forecast is for Free Cash Flow to grow by . View the best growth stocks for 2023 here. The official website for the company is www.abbvie.com. For the next nine years, the forecast is for Revenue to grow by 3.57%. The material provided on this website is for information purposes only and should not be understood as an investment advice. 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. 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. (AbbVie JPM Healthcare conference presentation). If you have an ad-blocker enabled you may be blocked from proceeding. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. Richard A. Gonzalez has an approval rating of 88% among the company's employees. I have no business relationship with any company whose stock is mentioned in this article. With AbbVie seemingly very confident of approvals for all 3 of these drugs, and Gonzalez suggesting they could form the basis of a "$6 billion kind of franchise" I have modelled for such an outcome by 2030. 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. I wrote this article myself, and it expresses my own opinions. 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. Here's Exactly How AbbVie Stock Can Beat the Market In 2023 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". 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. All rights reserved. The eye-disease markets are very large - Regeneron's Eylea is a >$7bn per annum selling drug and AMD markets are >$20bn in size. 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. 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. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. Currently, AbbVie sees a significantly higher portion of every dollar end up as cash to do with what they please. If you have an ad-blocker enabled you may be blocked from proceeding. AbbVie Inc. (ABBV) Analyst Ratings, Estimates & Forecasts - Yahoo Finance