I write about Biotech, Pharma and Healthcare stocks and share investment tips. AbbVie Stock Forecast 03-06-2023. As such I have modelled similar, although I have included an additional revenue stream from new products which I expect to be minor in nature but ultimately contributing an additional $1.5bn to the top line. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. 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. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions). CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Botox accounts for the bulk of the companys Aesthetics portfolio revenue and about 4% of the net as of 2022. The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. Since then, however, the stock price has fallen 18% to. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. Under the terms of the resolution, AbbVie will grant Alvotech a non-exclusive licence to its Humira-related patents in the US, which will begin on 1 July 2023. AbbVie has been increasing its dividend for 51 years. After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. 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. Find the latest AbbVie Inc. (ABBV) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. The pharma industry witnessed solid growth amid the pandemic. 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. Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Export data to Excel for your own analysis. 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. Since then, ABBV stock has decreased by 3.4% and is now trading at $156.06. AbbVie has received a consensus rating of Hold. (6.33% Upside) Based on 15 Wall Street analysts offering 12 month price targets for AbbVie in the last 3 months. 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. 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. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. First we can take a quick look at what a forward income statement for AbbVie might look like to 2030. Skyrizi is a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialisation globally. 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. The average Abbvie stock price prediction forecasts a potential upside of 7.07% from the current ABBV share price of $155.27. PEG Ratios above 1 indicate that a company could be overvalued. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. 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. The total revenue in 2021 was $56.20 billion with a 31% operating margin. 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. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. The weighted average cost of capital I estimate to be 9.6% - I tend to use a WACC of 10% for most Big Pharma analysis. Receive ABBV Stock News and Ratings via Email. It pays a dividend yield of 3.83%, putting its dividend yield in the top 25% of dividend-paying stocks. 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. The Abbvie stock forecast for 2025 had the price at $259.018. The company officially IPOd on January 2, 2013; contrary to criticisms, the move was solely to protect the parent company from expiring patents. 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. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. 2022 Cable News Network. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. Move your mouse over a quarter or year to see how estimates have changed over time. The companys operations span 20 countries, treating more than 60 million people and 40 conditions annually. The review period was extended by three months in order for the FDA to review additional data submitted by AbbVie. RHHBY vs. ABBV: Which Stock Is the Better Value Option? Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. Based on earnings estimates, ABBV will have a dividend payout ratio of 54.11% next year. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. 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. The stock projection varied from the low price target of $135 to the high of $200. AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). Sales are expected to recover in H2'22, however, and forecast year-on-year growth. 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. 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. During the same quarter in the prior year, the firm posted $3.31 EPS. This indicates that AbbVie will be able to sustain or increase its dividend. What is ABBV's Earnings Per Share (EPS) forecast for 2023-2025? All rights reserved. Trial results demonstrated an overall response rate of 63% and a median duration of response of 12 months, where 39% of patients had already tried a CAR-T cell therapy. All rights reserved. The dividend payout ratio is 89.56%. This means that . 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. Drug development has not traditionally been one of AbbVie's strengths - it has not had to be - but we ought to see the positive results of heavy investment into the oncology pipeline over the next 5-7 years, and by 2030, I believe this division could account for >17% of AbbVie's total revenues. The firm earned $15.12 billion during the quarter, compared to the consensus estimate of $15.30 billion. Thus, it is likely that ABBV will continue to find support on the dips in this type of market environment.. 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". Forecasts shouldnt be used as a substitute for your own research. 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. 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. AbbVie projected sales - immunology (my forecasts and assumptions). Having so much debt in a prevailing inflationary environment is also unattractive. 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. Trading CFDs is high risk and is not suitable for everyone. Stock Price Forecast 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. Aesthetics was propped up by growing sales of Botox - up 12% year-on-year to $678m, but let down by sales of Juvederm, which management put down to lockdown regulations in China, and the "suspension" of operations in Russia. My calculation is that Humira revenues in 2023 will be 80% of the 2022 figure, or $16.7bn. That reflects uncertainty about what the future holds for AbbVie. The most recent increase was . Our Product Disclosure Statement (PDS) and Target Market Determination provides important information about our products and who our products are more likely to be suited to Capital.com does not provide financial or investment advice and you should seek independent advice if you are unsure of the risks or whether our products are suitable for you. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. The company's average rating score is 2.44, and is based on 7 buy ratings, 9 hold ratings, and no sell ratings. The ex-dividend date of this dividend is Thursday, April 13th. 67.71% of the stock of AbbVie is held by institutions. 16 analysts have issued 12-month price targets for AbbVie's shares. I am not receiving compensation for it (other than from Seeking Alpha). View which stocks are hot on social media with MarketBeat's trending stocks report. AbbVie Inc. is a US-based biopharma company with global operations. This would represent an increase of 1.78%. On average, analysts forecast that ABBV's EPS will be $11.80 for 2023, with the lowest EPS . 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. 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. For ABBVIE INC stock forecast for 2023, 10 predictions are offered for each month of 2023 with average ABBVIE INC stock forecast of $156.58, a high forecast of $160.07, and a low forecast of $152.24. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. The company issued revenue guidance of -. (my tables and forecasting). Our first quarter results highlight the diversity of our portfolio and include compelling performance from key growth drivers Skyrizi, Rinvoq, Aesthetics and Neuroscience. Please disable your ad-blocker and refresh. My detailed modeling suggests there is 15-20% upside to look forward to in the short term and that ABBV stock remains a solid long-term buy opportunity for investors. And never invest or trade money you cannot afford to lose. The difference between trading assets and CFDs. ABBV has several positive factors pushing its price performance. I am using a weighted average cost of capital of ~10%, which is broadly consistent with the figure I use when modelling for the other 7 members of what I term the "Big 8" US Pharmas - Johnson & Johnson, Eli Lilly, Pfizer, Merck & Co (MRK), Bristol Myers Squibb, Amgen, and Gilead Sciences (GILD) - which helps prove the accuracy of the calculation. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. What is a Good Dividend Yield? We expect proof-of-concept data from roughly a dozen additional early stage oncology opportunities over the next couple of years. Price target. (AbbVie data). 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. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. 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. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. 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. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. This could present more profit potential for drugmakers as well as investors. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. 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. Date. I have no business relationship with any company whose stock is mentioned in this article. How often does AbbVie pay dividends? When looking for ABBV stock forecasts, its important to bear in mind that analysts forecasts can be wrong. target price for AbbVie stock based on DCF / EBITDA multiple analysis (my table and assumptions). View our ABBV earnings forecast. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). That makes companies like AbbVie generally very attractive to investors although it should be noted that AbbVie carries a very high level of debt which stood at >$60bn as of Q322 - more or less the amount the company paid to acquire Allergan. The average price target represents a 6.33% change from the last price of $153.90. Retail sales were up but so was inflation which meant more volatility for stocks. 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. 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. That was below AbbVie stock analysts' view for $14.16. AbbVie CEO Gonzalez told the audience at the JPM Healthcare conference that: We now have a little over 90% access for next year for Humira at parity. 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. 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. I wrote this article myself, and it expresses my own opinions. ABBV-916 is targeting Alzheimer's and it is an anti-amyloid antibody, with a similar mechanism of action ("MoA") to recently approved Leqembi, developed by Biogen (BIIB) / Eisai, and likely soon-to-be approved Donanemab, developed by Eli Lilly. AbbVie is a leader in ESG and sustainability. What other stocks do shareholders of AbbVie own? I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. The company can be reached via phone at (847) 932-7900 or via fax at 302-655-5049. As such, I have decreased my own expectations for 2022 based on simply doubling H1'22 revenues to get a FY22 figure, and downgrading growth expectations to 3% per annum until 2026. That certainly won't derail the oncology division however. Epcoritamab alone will not be sufficient to get AbbVie where it wants to be - despite some analysts believing it will be the highest grossing Pharma revenue wise by 2026. 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. Disclosure: I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. AbbVie is a leading dividend payer. With a 5-year investment, the revenue is expected to be around +88.28%. See what's happening in the market right now with MarketBeat's real-time news feed. approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. View the best growth stocks for 2023 here. Refer to our. 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. Their ABBV share price forecasts range from $140.00 to $200.00. 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 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. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. To see all exchange delays and terms of use please see Barchart's disclaimer. In other words, no Humira, no problem! Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. Both of these assets appear to be doing the job they were intended for - protecting AbbVie's dominance in various auto-immune markets - and now represent ~13% of AbbVie's total revenue generation. Read the conference call transcript. 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 algorithm-based forecaster Wallet Investor in its Abbvie stock forecast for 2022, the price could reach $169.852 by the end of December, $199.491 by 2023 and $229.304 by 2024. I write about Biotech, Pharma and Healthcare stocks and share investment tips. I hope to see you there. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. It is generally accepted however that 2023 will see the entrants into the US market of several generic versions of Humira - which works by inhibiting Tumor Necrosis Factor ("TNF"), an inflammation causing protein - from the likes of Viatris (VTRS), Organon (OGN), Pfizer (PFE), Amgen (AMGN), and several more companies involved in the development and sale of generic or biosimilar drugs. 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. 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. After 2022 Humira's row is shaded yellow to signify patent expiry. I wrote this article myself, and it expresses my own opinions. 1 dividend stock for a LIFETIME of income. 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 acquisition expanded AbbVies neuroscience portfolio, adding first-in-class modulators of the synaptic vesicle protein 2A, including lead molecule SDI-118 currently in Phase 1b studies. The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. The company's lead asset - all-time best selling immunology drug Humira - finally loses patent protection this year and sales will enter a period of terminal decline. I have no business relationship with any company whose stock is mentioned in this article. 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. 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. The company didn't offer a . The other major plus is probably the performance of the neuroscience divisions, where as we can see, Botox (indicated for migraine treatment), atypical antipsychotic Vraylar, migraine therapy Ubrelvy and newly launched Qulipta, an oral CGRP inhibitor indicated for chronic migraine all delivered good sales growth. Build a CFD portfolio with your favourite companies. 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. You should consider whether you understand how CFDs work and can afford the risks. Slide from JPM Conference 2022 presentation. 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. Moreover, with surging demand, rising investments in research and development, and increasing e-pharmacy channels, the industry is well-positioned for significant growth New research suggests Depakote ingredient could have a new clinical function. Johnson & Johnson is rushing toward a patent cliff but a new shelf offering registration suggests itis gearing up for acquisitions. 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. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. 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. 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, Morningstar: 2019 Morningstar, Inc. All Rights Reserved. ABBV Stock 12 Months Forecast. The current consensus among 24 polled investment analysts is to Buy stock in Abbvie Inc. 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. Receive regular, detailed analysis focused on biotech and healthcare stocks. The stocks growth marks a significant outperformance over the broader markets. 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. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. Within the oncology division sales of Imbruvica fell 17% year-on-year. With no LOEs on the horizon, it is relatively plain sailing for the company ex-Humira, and the performance of Skyrizi and Rinvoq - to date at least - suggests management does have this massive patent cliff covered. Abbvies first quarter 2022 financial results for the quarter ended 31 March revealed that diluted earnings per share (EPS) increased to $2.51 on a generally accepted accounting principles (GAAP) basis, up from $1.99 a year earlier. I wrote this article myself, and it expresses my own opinions. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential.