AbbVie's Transformational 2023, Analyst Anticipates Growth in 2024 Amid Competitive Pressures

William Blair has upgraded AbbVie Inc ABBV, noting confidence in the company’s growth outlook over the near and long term as it heads into 2024.

The analysts Tim Lugo, Lachlan Hanbury-Brown, and John Boyle write that 2023 was the year of transformation for AbbVie, marked by the introduction of Humira (arthritis) biosimilars and heightened competition for key franchises like Imbruvica (blood cancer drug) and Botox (cosmetic surgery).

Also Read: Aesthetics Market Resilience: AbbVie Asserts Widely Used Botox Dominance Amidst Rising Competition.

Notably, AbbVie’s growth platform, led by Skyrizi and Rinvoq, has demonstrated strong performance, effective management of Humira erosion, and strategic acquisitions of ImmunoGen Inc IMGN and Cerevel Therapeutics Holdings Inc CERE. 

These acquisitions enhance the company’s pipeline in crucial therapeutic areas such as solid tumor and neuroscience, positioning AbbVie for sustained growth throughout the remainder of the decade.

William Blair notes AbbVie’s highest dividend yield of 3.8% among domestic pharmaceutical companies experiencing significant top-line growth (>1%) from 2024 to 2029. 

Given AbbVie’s evident growth prospects in the short and long term, coupled with its reasonable valuation, the analysts find its shares attractive compared to those of its peers.

The analysts have upgraded the stock from Market Perform to Outperform.

William Blair notes that although there is still some uncertainty about the future erosion of Humira and Imbruvica, the analysts show confidence that investors now have sufficient visibility to feel assured about AbbVie’s robust growth prospects in the near and long term.

AbbVie is set to release its fourth quarter 2023 earnings on 2 February. According to data from Benzinga Pro, the company is expected to report an EPS of $2.81 with sales of $14.03 billion.

Read Next: Botox And Similar Injections Have Associated Risks: Consumer Group Pushes for Stronger Warnings.

Price Action: ABBV shares are down 0.12% at $164.21 on the last check Monday.