AbbVie Inc. (NYSE: ABBV) is scheduled to report its second-quarter financial results before the markets open Friday. The consensus estimates from Thomson Reuters call for $1.06 in earnings per share (EPS) on $5.62 billion in revenue. In the same period of the previous year, the company reported EPS of $0.82 and $4.93 billion in revenue.
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This is a top global pharmaceutical stock pick at Jefferies, and a franchise pick as well. AbbVie is a global, research-based biopharmaceutical company formed in 2013 following its separation from Abbott Laboratories. The company’s mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie employs more than 26,000 people worldwide and markets medicines in more than 170 countries.
For the first quarter, AbbVie reported outstanding earnings as Humira sales continued on a torrid pace. Larry Robbins from Glenview Capital said he believes that the stock is trading relatively “cheap” and that AbbVie’s pipeline is underappreciated as it will be difficult for competitors to make a generic version of Humira, a drug to treat rheumatoid arthritis and Crohn’s disease.
With numerous clinical read-outs for the stock over the rest of 2015, many on Wall Street think that over time the stock could have anywhere from $15 to $25 per share upside from current levels. Many analysts feel that investors may not fully appreciate the earnings power of the company, even with a biosimilar Humira, given the incredible pipeline, the Pharmacyclics deal and the ability to adjust the cost structures.
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Prior to its earnings report, a few analysts weighed in on AbbVie:
- BMO Capital Markets reiterated an Outperform rating and raised its price target to $77 from $71.
- SunTrust initiated coverage with a Buy rating and an $85 price target.
- Citigroup reiterated a Sell rating.
- Piper Jaffray initiated coverage with an Overweight rating and a $77 price target.
Shares of AbbVie were down 0.4% to $70.31 Thursday afternoon. The stock has a consensus analyst price target of $75.47 and a 52-week trading range of $51.37 to $71.60. So far in 2015, AbbVie has had a very strong performance with shares up over 10%.
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