On Thursday, JPMorgan updated its outlook on AbbVie (NYSE:ABBV), increasing the price target to $210 from $190 while maintaining an Overweight rating on the stock. The adjustment follows AbbVie's second-quarter results, which prompted changes to the firm's financial model.
The revised model takes into account several factors, including sustained performance from the pharmaceutical company's drugs Skyrizi and Rinvoq, and projected earnings per share (EPS) growth in 2025 that aligns with sales. However, JPMorgan also noted a decrease in the near-term forecasts for AbbVie's Aesthetics franchise and a slight reduction in U.S. sales of Humira, a top-selling drug for the company.
For the year 2024, JPMorgan now projects total sales for AbbVie to reach approximately $55.8 billion, slightly above the company's guidance of around $55.5 billion. The EPS estimate for the same year has been set at $10.86, which falls within AbbVie's guidance range of $10.71 to $10.91. Looking ahead to 2025, the firm expects sales growth of about 5.6% and an EPS of $12.07, indicating a 5.3% increase excluding in-process research and development (IPRD).
JPMorgan expressed a positive outlook on AbbVie's valuation, noting that the company's core business is exceeding expectations. With Humira becoming less significant over time—the firm estimates Humira sales post-2025 to represent less than $10 of net present value (NPV) for AbbVie—JPMorgan sees potential for further valuation expansion. The firm also anticipates additional growth opportunities for AbbVie with upcoming data on emraclidine, acquired through the CERE transaction, and the company's overall growth prospects beyond 2025.
In other recent news, AbbVie Inc (NYSE:ABBV). has raised its annual profit outlook due to a surge in sales from its immunology drug lineup. The pharmaceutical giant's revised forecast comes after surpassing Wall Street's second-quarter earnings expectations, with quarterly sales totaling $14.46 billion and adjusted earnings at $2.65 per share. BMO Capital Markets has maintained an Outperform rating on AbbVie and increased the shares target to $214, reflecting confidence in the company's future revenue growth.
AbbVie has also applied for FDA and EMA approval for its drug upadacitinib to treat adults with giant cell arteritis, backed by promising results from the Phase 3 SELECT-GCA study. The company recently appointed Roopal Thakkar, M.D., as the new Executive Vice President of Research & Development and Chief Scientific Officer.
In addition, AbbVie updated 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. These developments highlight AbbVie's ongoing efforts in the pharmaceutical industry.
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