AbbVie, like its parent Abbot Laboratories, is a well-established dividend growth stock. Today, AbbVie operates as a diversified multi-national pharmaceutical company with a patient-centric approach to research. Multidrug Resistant Bacteria Treatment Market - MarketWatch 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. View ABBV analyst ratings or view top-rated stocks. Teliso V is an antibody drug conjugate and a c-Met inhibitor. Read our dividend analysis for ABBV. This year is off to a strong start. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. You should do your own research and never invest money you cannot afford to lose. AbbVie projected sales - immunology (my forecasts and assumptions). 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 official website for the company is www.abbvie.com. Any company is likely to struggle if sales of its best-selling asset begin to decline by ~20% per annum, which is traditionally the rate at which patent expired drugs' sales slip, but when the drug in question accounts for >35% of a company's sales, as Humira does, the situation becomes even more serious. All times are ET. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. 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. 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. 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. As with debt, if approval and revenue targets aren't met, it can quickly result in a loss of faith in the company. The average price target is $163.64 with a high forecast of $190.00 and a low forecast of $133.00. Outside of Humira, management does not have to worry about LOEs for any of its other portfolio products before the end of the decade, which is encouraging, however, based on my own projections of how AbbVie will generate its revenues between 2023 and 2030, if management wants to drive a CAGR in the high single digits after 2025, it will need some help from its pipeline - not an area of particular strength for AbbVie. We're currently running a sale at my private investing ideas service, Haggerston BioHealth, where members get access to portfolios, market alerts, real-time chat, and more. That was below AbbVie stock analysts' view for $14.16. 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. I am not receiving compensation for it (other than from Seeking Alpha). Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. In-depth profiles and analysis for 20,000 public companies. 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. All rights reserved. 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 product revenue forecasts to 2030. 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. All Rights Reserved. Capital Com is an execution-only service provider. The dividend payout ratio of AbbVie is 89.56%. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. Abbvie has a strong pipeline of projects ahead, and has recently received US FDA approval of its ulcerative colitis drug Rinvoq. (my table and forecasts). AbbVie Fair Value Forecast for 2023 - 2025 - 2030 In the last two years, AbbVie's Price has grown, increasing from $91.55 to $130.05 - an increase of 42.06%. 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. 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. According to 23 major analysts, AbbVie's Fair Value will fall by 5.43% in the next year, reaching $122.98. Bringing RGX314 would be a coup for AbbVie although I am forecasting for only $2bn in peak revenues in 2030 as a hedge against the risk that this candidate does not make it to market on safety grounds. AbbVie has been increasing its dividend for 51 years. Abbvie Inc Stock Forecast, Predictions & Price Target - WallStreetZen My calculation is that Humira revenues in 2023 will be 80% of the 2022 figure, or $16.7bn. The firm earned $15.12 billion during the quarter, compared to the consensus estimate of $15.30 billion. In the last two years, Aurora Cannabis's Revenue has fallen from C$245.54M to C$245.25M - a 0.12% decrease. 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. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. 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. What is Richard A. Gonzalez's approval rating as AbbVie's CEO? Other profitable therapies include but are not limited to SKYRIZI for psoriasis, RINVOQ for rheumatoid arthritis and IMBRUVICA and VENCLEXTA for chronic leukemia conditions. ABBV currently yields 4.1% and has raised its dividend every year since 2013. Please log in to your account or sign up in order to add this asset to your watchlist. 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. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. AbbVie Stock Forecast 03-06-2023. Get daily stock ideas from top-performing Wall Street analysts. That is a significant difference because at a forward P/E of 10x AbbVie stock looks like a solid buy opportunity, but at a P/E of 20x, when we consider the risk/challenge of Humira's LOE, prospective investors may prefer to maintain a watching brief as opposed to opening a position. American biopharmaceutical company Abbvie (ABBV) has surged nearly 13% year to date (YTD), and 35% year-over-year (YOY), as of 30 June. Move your mouse over a quarter or year to see how estimates have changed over time. The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. The company can be reached via phone at (847) 932-7900 or via fax at 302-655-5049. 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. Having dived into the numbers however and looked ahead to 2030 through the eyes and guidance of management, my conclusion is that investors can probably buy AbbVie stock at current price with reasonably high hopes of making a decent ROI - perhaps 15 - 20% in the next 12 - 18 months, whilst also benefiting from a generous dividend. 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. On the negative side of things, we can see that AbbVie is no longer breaking out sales within its Women's Health division, with revenues lumped into the "all other section, presumably. 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. AbbVie sees strong 2022 earnings as Botox, Skyrizi power profit beat And never invest or trade money you cannot afford to lose. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. 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. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. call (03) 8658 0539 support.au@capital.com. 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. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? Please. 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%. One share of ABBV stock can currently be purchased for approximately $156.06. 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. AbbVie Inc. (ABBV) Stock Forecast & Price Targets - Stock Analysis 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. Please. (AbbVie data). 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. Kateryna Onyshchuk/iStock via Getty Images. I am modelling for AbbVie to grow revenues at a compound annual growth rate of ~5% between now and 2030 with growth accelerating in the latter half of the decade. I wrote this article myself, and it expresses my own opinions. 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. Disclosure: I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. Shares of ABBV stock can be purchased through any online brokerage account. Botox accounts for the bulk of the companys Aesthetics portfolio revenue and about 4% of the net as of 2022. Johnson & Johnson Free Cash Flow Forecast for 2023 - 2025 - 2030. 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. When looking for ABBV stock forecasts, its important to bear in mind that analysts forecasts can be wrong. There has been a raft of price-moving news for Abbvie, which may positively affect the stock price. Date. ABBV : ABBVIE INC stock forecast 2022 - 2025 - 2030 - AI Pickup Currently, AbbVie sees a significantly higher portion of every dollar end up as cash to do with what they please. 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. AbbVie is a leader in ESG and sustainability. Having so much debt in a prevailing inflationary environment is also unattractive. Let's begin our analysis with the immunology division. Neuroscience is one of AbbVie's most intriguing divisions and perhaps the hardest to model. I am not receiving compensation for it (other than from Seeking Alpha). This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. target price for AbbVie stock based on DCF / EBITDA multiple analysis (my table and assumptions). This indicates that AbbVie will be able to sustain or increase its dividend. Build a CFD portfolio with your favourite companies. 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. 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. In the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. 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. According to the Abbvie stock technical analysis, as of 30 June, the Relative Strength Index (RSI) was pointing to neutral at 62.18. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. Aurora Cannabis Stock Forecast for 2023 - 2025 - 2030 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. 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. We expect that to happen in 2027 with continued significant growth anticipated in the following years. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. 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. The Abbvie stock forecast for 2025 had the price at $259.018. The analysts 12-month consensus ABBV stock price target was $159.75. The companys full-year adjusted diluted EPS guidance excluded any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of the year, as both cannot be reliably forecasted. 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. 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. 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. Slide from JPM Conference 2022 presentation. What is ABBV's Earnings Per Share (EPS) forecast for 2023-2025? Your current $100 investment may be up to $188.28 in 2028. I wrote this article myself, and it expresses my own opinions. 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. Abbvie Stock Forecast | Is Abbvie a Good Stock to Buy? - Capital I'm on twitter @edmundingham. Export data to Excel for your own analysis. AbbVie could be the biggest global Pharma by revenue generation in 2028. I have downgraded my forecasts to 2016 accordingly however to 2% annual growth. Since then, ABBV stock has decreased by 3.4% and is now trading at $156.06. Their ABBV share price forecasts range from $140.00 to $200.00. Identify stocks that meet your criteria using seven unique stock screeners. Over the years, AbbView Inc. has made numerous acquisitions. 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 write about Biotech, Pharma and Healthcare stocks and share investment tips. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. All rights reserved. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. The ex-dividend date of this dividend is Thursday, April 13th. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. The division delivered >$1.65bn in sales in Q2'22, up >15% year-on-year, and with Vraylar, Ubrelvy and possibly Qulipta all earmarked for blockbuster sales - $4bn in the case of Vraylar - my forecasting suggests this division could double in size by 2030, from ~$6.6bn revenues generated in FY22, to >$13.5bn by 2030. 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. AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com GB Is this happening to you frequently? There are currently 9 hold ratings and 7 buy ratings for the stock. Receive regular, detailed analysis focused on biotech and healthcare stocks. AbbVie Stock: A Blue Chip You Cannot Afford To Miss, Yield 4.1% AbbVie does not have the funds to pursue any large M&A deals, but it does not need to either, given the strength of its pipeline and products. 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. We now expect global sales for Skyrizi to reach more than $10 billion in 2025, an increase of $2.5 billion versus our previous guidance, reflecting higher performance across basically all of the indications. 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. This suggests a possible upside of 3.8% from the stock's current price. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. 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. It now expects full-year profit in the range of $13.92-$14.12 a share. What is the dividend yield for AbbVie? AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com Get short term trading ideas from the MarketBeat Idea Engine. 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. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Based on earnings estimates, ABBV will have a dividend payout ratio of 54.11% next year. In February, a Phase 3 induction study saw positive top-line results. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. See what's happening in the market right now with MarketBeat's real-time news feed. First of all, as shown in the table above I forecast product sales out to 2030. AbbVie updated its FY 2024 earnings guidance on Friday, February, 10th. (AbbVie JPM Healthcare conference presentation). Payout ratios above 75% are not desirable because they may not be sustainable. View which stocks are hot on social media with MarketBeat's trending stocks report. Projections are based on making fundamental and technical studies of the ABBV stock price performance. Always do your own research on a stocks price performance and predictions before making an investment. Johnson & Johnson Stock Forecast 2023 - 2025 - 2030 The material provided on this website is for information purposes only and should not be understood as an investment advice. The companys original winner, Humira, is still the number one revenue source but the portfolio has been greatly expanded. See AbbVie Inc. (ABBV) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. If you rely on the information on this page then you do so entirely on your own risk. If signs point to that happening I will likely be revising my target price upwards again, but I am playing it more conservative as nobody truly knows the scale of losses after the Humira LOE. Over the next nine years, experts believe that GSK's Free Cash Flow will grow at a rate of 1.98%. Here's Exactly How AbbVie Stock Can Beat the Market In 2023 Assuming there are 2 highly effective drugs for 1 disease, PMedicine seeks to identify which patients respond better to each. Finally, AbbVie was able to raise its financial . 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. 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. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page.