On Friday, BMO Capital Markets maintained an Outperform rating on Abbvie (NYSE:ABBV) stock and increased the shares target to $214 from the previous $180. The revision reflects a positive outlook on the company's future revenue growth, despite the ongoing loss of exclusivity for its blockbuster drug, Humira.
The analyst at BMO Capital expressed greater confidence in Abbvie's portfolio after a detailed review, especially highlighting the performance of newer drugs Skyrizi and Rinvoq. These drugs are anticipated to grow at a rate surpassing market expectations, which could help mitigate the impact of Humira's biosimilar competition.
Abbvie's strategic moves, including recent acquisitions and partnerships, were also noted as factors contributing to the raised price target. The deals with ImmunoGen (NASDAQ:IMGN) and Cervel are expected to further expand Abbvie's revenue growth potential and provide additional catalysts to propel the stock's value.
The analyst's reassessment comes midway through the first full year since Humira, Abbvie's top-selling anti-inflammatory drug, began facing biosimilar competition. The company's proactive steps to diversify its product lineup appear to be resonating with market analysts.
The new price target of $214 reflects a significant increase in the analyst's expectations for Abbvie's stock performance, as the company continues to evolve its business strategy in response to market changes.
In other recent news, AbbVie (NYSE:ABBV) has made considerable strides in its operations and product portfolio. The biopharmaceutical company has applied for FDA and EMA approval for its drug upadacitinib to treat adults with giant cell arteritis.
The application is supported by the Phase 3 SELECT-GCA study, which demonstrated promising results. In leadership changes, AbbVie has appointed Roopal Thakkar, M.D., as the new Executive Vice President of Research & Development and Chief Scientific Officer.
The company has also adjusted its earnings outlook for 2024 due to significant research and development expenses, with the full-year guidance now standing at an adjusted diluted EPS range of $10.61 to $10.81. On the acquisition front, AbbVie recently purchased Celsius Therapeutics for $250 million, incorporating the investigational drug CEL383 into its immunology portfolio.
Additionally, the company launched Allē Payment Plans, aimed at making aesthetic treatments more financially accessible to patients. On the regulatory side, AbbVie received a Complete Response Letter from the FDA regarding its New Drug Application for ABBV-951, a treatment for Parkinson's disease.
Analyst firms Piper Sandler and Deutsche Bank (ETR:DBKGn) have respectively raised their price target for AbbVie and reiterated their Hold rating on the company. These developments highlight AbbVie's ongoing efforts in the therapeutic area.
InvestingPro Insights
The recent update from BMO Capital Markets on Abbvie (NYSE:ABBV) aligns with several positive indicators reflected in InvestingPro data. Abbvie's market capitalization stands robust at $302.21 billion, underscoring its significant presence in the pharmaceutical industry. While the P/E ratio may seem elevated at 50.88, the adjusted P/E ratio for the last twelve months as of Q1 2024 is more grounded at 23.0, suggesting a potentially more reasonable valuation when considering the company's earnings. Additionally, a dividend yield of 3.62% combined with a history of raising dividends for 11 consecutive years showcases Abbvie's commitment to returning value to shareholders.
InvestingPro Tips highlight that Abbvie is anticipated to have net income growth this year, and despite 13 analysts revising earnings downwards, the company is still expected to be profitable. With a strong free cash flow yield implied by its valuation and a history of low price volatility, Abbvie represents a stable investment with growth potential. For readers interested in deeper analysis and more tips, there are 12 additional InvestingPro Tips available, which can be accessed with a special offer using the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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