7. AbbVie Inc. (NYSE:ABBV)
Forward P/E as on February 28: ~17.04x
10-Year Sales Growth: ~10.9%
Number of Hedge Fund Holders: 85
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company, which is engaged in the research and development, manufacturing, commercializing, and selling medicines and therapies. Guggenheim upped the price target to $214 from $212, keeping a “Buy” rating after updating the company model following strong Q4 and initial FY25 guidance. In Q4 2024, the worldwide net revenues came in at $15.102 billion, reflecting an increase of 5.6% on a reported basis, or 6.1% on an operational basis. For FY 2025, AbbVie Inc. (NYSE:ABBV) expects adjusted diluted EPS of $12.12 – $12.32.
Guggenheim remains optimistic about the company, considering the solid growth outlook at least through the end of the decade. AbbVie Inc. (NYSE:ABBV) has reaffirmed its expectations for a high single-digit compound annual revenue growth rate through 2029, assuming 2024 as the base year. Elsewhere, BMO Capital analyst Evan Seigerman upped its price target to $215 from $208, keeping an “Outperform” rating. As per the analyst, AbbVie Inc. (NYSE:ABBV)’s Skyrizi and Rinvoq $4 billion guidance increase highlights the growth profile for the company in H2 of the decade, moving on from the Humira loss of exclusivity narrative.
Notably, AbbVie Inc. (NYSE:ABBV) anticipates combined Skyrizi and Rinvoq 2027 revenues of over $31 billion, reflecting an increase of ~$4 billion as compared to previous guidance for combined revenues of over $27 billion in 2027. Polaris Capital Management, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”
