On Wednesday, Truist Securities adjusted its price target on AbbVie stock (NYSE:ABBV), bringing it down to $211 from the previous $215, while sustaining a Buy rating on the shares. The $313.6 billion pharmaceutical giant is currently trading near its InvestingPro Fair Value, with shares at $177.71.
The adjustment comes amid expectations of a positive long-term outlook for the pharmaceutical company as it navigates the market challenges following the patent expiry of its blockbuster drug, Humira. Truist Securities highlighted AbbVie's promising future, noting the anticipated momentum of newer drugs such as Skyrizi and Rinvoq, which are expected to continue gaining market share in multiple indications.
As a prominent player in the biotech industry, AbbVie maintains strong financials with a 70.3% gross profit margin and has consistently raised its dividend for 12 consecutive years, currently yielding 3.65%. The firm also underscored the growth potential of other products like Venclexta and Vraylar, as well as AbbVie's prospects in the migraine market.
Management at AbbVie has expressed confidence in achieving a high-single-digit revenue compound annual growth rate (CAGR) through the end of the decade, along with mid-single-digit top-line and bottom-line growth for the fiscal year 2025.
The company's proactive approach to mergers and acquisitions (M&A) and business development (BD) in 2024 was also a point of focus. Truist is keen to observe how these strategic moves will bolster AbbVie's revenue streams over the long term.
Many of the deals in the past year targeted early-stage opportunities with the potential to enhance AbbVie's pipeline in immunology and inflammation (I&I), neuropsychiatry, oncology, and aesthetics.
Truist Securities provided a forecast for AbbVie's revenues and earnings per share (EPS), projecting figures of $56.1 billion for 2024, $59.5 billion for 2025, and $64.0 billion for 2026. Corresponding EPS estimates are $10.91 for 2024, $11.83 for 2025, and $13.61 for 2026. Moreover, the financial model for AbbVie has been extended from the year 2033 to 2035, reinforcing the firm's conviction in the company's sustained growth.
InvestingPro analysis reveals 8 additional key insights about AbbVie's financial health and market position, available in the comprehensive Pro Research Report. In summary, while the price target has been slightly reduced, the Buy rating remains intact, reflecting Truist Securities' positive stance on AbbVie's stock performance potential in the coming years, supported by the company's strong 15.28% price return over the past year.
In other recent news, AbbVie Inc (NYSE:ABBV). has adjusted its Q4 earnings guidance for 2024 due to significant research and development costs, with an anticipated unfavorable effect of $0.88 per share. The company's full-year 2024 adjusted diluted earnings per share, including the impact of the fourth-quarter expenses, is now expected to be between $10.02 and $10.06.
Analysts from TD Cowen and Leerink Partners have expressed positive stances on AbbVie, naming it a top pick for 2025 and upgrading the stock to Outperform, respectively.
AbbVie has made strategic acquisitions recently, including Nimble Therapeutics for $200 million and Aliada Therapeutics. The latter acquisition added ALIA-1758, a promising Alzheimer's disease therapy, to AbbVie's neuroscience pipeline. Moreover, Piper Sandler has raised its price target for AbbVie to $220, maintaining an Overweight rating on the stock.
AbbVie has also reported positive results from its Phase 3 TEMPO-2 trial of tavapadon, a potential treatment for early Parkinson's disease. The trial met its primary and key secondary endpoints, demonstrating significant improvement in motor function in patients treated with tavapadon. These are all recent developments indicating ongoing advancements and growth at AbbVie.
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