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Analysts Have Mixed Opinions on AbbVie in March

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Analysts’ recommendations and target price

Wall Street analysts expect a potential upside of 15.38% for AbbVie (ABBV) based on the company’s closing price on March 27. Analysts revised the company’s target price downward from $94.18 in January to $92.18 in February and then reiterated its target price of $92.18 in March. The current consensus analyst recommendation for the stock is a “hold.”

To learn more about AbbVie’s growth drivers in fiscal 2019, read What Are the Key Growth Drivers for AbbVie in 2019?

Of the 18 analysts covering AbbVie, two have given it “strong buys,” three have given it “buys,” ten have given it “holds,” two have given it “sells,” and one has given it a “strong sell.” The highest and lowest target price estimates for the company are $115 and $71, respectively.

On March 27, AbbVie closed at $79.89, 1.08% lower than its previous closing price, 5.44% higher than its 52-week low of $75.77, and 25.51% lower than its 52-week high of $107.25. The company’s market cap is $120.03 billion.

Based on its closing price on March 27, AbbVie has reported returns of -0.67% in the last week, -0.77% in the last month, and -5.07% in the last quarter. The company has reported returns of -14.48% in the last half year, -16.15% in the last year, and -13.34% year-to-date.

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Growth trends

In its fourth quarter, AbbVie reported revenue of $8.31 billion, a YoY (year-over-year) rise of 7.31% but $66.47 million lower than the consensus estimate. The company reported non-generally accepted accounting principles EPS of $1.90, a YoY rise of 28.38% but $0.03 lower than the consensus estimate.

On its fourth-quarter earnings conference call, AbbVie highlighted Humira, Imbruvica, Venclexta, Mavyret, and Orilissa as its key growth assets in fiscal 2019.

On March 26, AbbVie issued a press release announcing the approval of Skyrizi (risankizumab) by the Japanese Ministry of Health, Labour, and Welfare in the indications of psoriatic arthritis, generalized pustular psoriasis, plaque psoriasis, and erythrodermic psoriasis where conventional therapies had been found to result in an inadequate response.

According to the company’s fourth-quarter earnings conference call, it expects risankizumab to prove to be a superior treatment option in moderate to severe psoriasis indications, both for patients who don’t respond sufficiently to TNF therapies and for those who are naïve to biologic therapies. Additionally, risankizumab’s quarterly dosing is expected to prove to be more convenient for patients.

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