BofA raises AbbVie stock PT but maintains Neutral rating, sees limited upside By Investing.com

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<p>On Monday, Bank of America (BofA) increased its price target on AbbVie (NYSE:) to $167 from $165, while maintaining a Neutral rating on the stock. This adjustment follows AbbVie’s robust fourth-quarter earnings, which exceeded expectations by $309 million in revenue and $0.03 in earnings per share (EPS). Additionally, the company has uplifted its 2024 EPS forecast to a range of $11.05 to $11.25.</p>
<p>AbbVie’s shares experienced a positive response, attributed to the company’s optimistic long-term financial prospects. These include a revision of combined Skyrizi and Rinvoq 2027 revenue projections to over $27 billion, up from the previous $21 billion estimate. The company also expects Ubrelvy and Qulipta to achieve peak sales surpassing $3 billion, and foresees a return to growth in oncology revenue by 2026. Furthermore, peak sales for its Aesthetics products are projected to exceed $9 billion in 2029, with Vraylar’s peak sales nearing $5 billion.</p>
<p>The company’s management has provided guidance for $7.8 billion in U.S. Humira sales, with a -36% erosion rate, which is more favorable than the -40% market consensus. BofA has revised its own 2024 U.S. Humira sales estimate to $7.4 billion, reflecting a -39% erosion compared to its previous -43% projection. This revision is supported by increased formulary status visibility and a supply agreement with Caremark/Cordavis (CVS).</p>
<p>Despite the positive developments, BofA remains cautious.</p>
<p>“Overall, our 24-29’ sales CAGR is 4% (vs. “a high single-digit” CAGR) as we think there are clinical and commercial (e.g., I&amp;I pricing pressures, macro uncertainty continuing to limit Aesthetics uptake, oral CGRP prescribing dynamics skewed in favor of PCP’s) overhangs ex-Humira that may limit upside,” said the analysts.</p>
<h2>InvestingPro Insights</h2>
<p>AbbVie’s recent performance and Bank of America’s updated price target have put the company in the spotlight. In the midst of these developments, <em>InvestingPro Insights</em> offer a deeper dive into the company’s financial health and market position. Notably, AbbVie has a market capitalization of 303.27 billion USD, reflecting its significant presence in the pharmaceutical industry. The company’s Price/Earnings (P/E) Ratio stands at 46.92, which suggests a higher valuation compared to the average in the sector. However, when adjusted for the last twelve months as of Q4 2023, the P/E Ratio becomes more favorable at 22.68.</p>
<p>One of the <strong>InvestingPro Tips</strong> highlights that AbbVie has raised its dividend for 11 consecutive years, which may appeal to income-focused investors. Additionally, analysts expect net income to grow this year, providing a positive outlook for the company’s profitability. With a dividend yield of 3.68% as of the latest data, and a dividend growth of 4.73% over the last twelve months, AbbVie shows potential as a steady income-generating investment.</p>
<p>For those interested in further analysis and additional <strong>InvestingPro Tips</strong>, there are 14 more tips available on the InvestingPro platform, which can be accessed by visiting: https://www.investing.com/pro/ABBV. Currently, InvestingPro is offering a special New Year sale with discounts of up to 50%. Additionally, readers can use coupon code “<strong>SFY24</strong>” to get an additional 10% off a 2-year InvestingPro+ subscription, or “<strong>SFY241</strong>” to get an additional 10% off a 1-year InvestingPro+ subscription.</p>
<p>AbbVie’s strong free cash flow yield, as indicated by its valuation, and its status as a prominent player in the Biotechnology industry, are factors that investors might consider. Moreover, the company’s stock has been trading near its 52-week high, reinforcing the positive sentiment surrounding its financial prospects and market performance.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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<br /><a href="https://www.investing.com/news/stock-market-news/bofa-raises-abbvie-stock-pt-but-maintains-neutral-rating-sees-limited-upside-93CH-3293059">Source link </a></p><p>The post <a href="https://forextraderhub.com/bofa-raises-abbvie-stock-pt-but-maintains-neutral-rating-sees-limited-upside-by-investing-com.html">BofA raises AbbVie stock PT but maintains Neutral rating, sees limited upside By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>