AbbVie (ABBV) is off to a good start going by its impressive 1Q 2021 results. Net revenues increased by 51% year-over-year to $13.01 billion. The drug-maker generated adjusted diluted earnings per share of $2.95 as the adjusted gross margin came in at 83.9%.
CEO Richard Gonzalez stated, “Our new products are delivering impressive performance and we are on the cusp of potential commercial approvals for more than a dozen new products or indications over the next two years – including five expected approvals in 2021″.
AbbVie has made an application for the approval of Skyrizi, a novel treatment for adults with active psoriatic arthritis. The company also delivered positive results from the Phase 3 induction study of Rinvoq to treat moderate to severe ulcerative colitis. (See AbbVie stock analysis on TipRanks)
During the quarter, the Food and Drugs Administration (FDA) accepted AbbVie’s New Drug Application for an orally administered calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) for migraine treatment in adults. The company also submitted a new drug application (NDA) for pilocarpine 1.25% for the treatment of presbyopia.
Following the impressive 1Q results, AbbVie’s management raised its guidance for the full year. GAAP diluted EPS is now expected between $7.27 and $7.47, up from the initial guidance of between $6.69 and $6.89.
In addition, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on AbbVie following the strong beat in 1Q.
Divan told investors, “With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend.”
The analyst has a $128 price target on AbbVie, implying approximately 11.6% upside potential to current levels.
Analysts on Wall Street are optimistic about AbbVie’s long-term prospects. Consensus among analysts is a Strong Buy based on 10 Buys and 1 Hold. The average analyst price target of $128.10 implies 11.7% upside potential to current levels.
ABBV scores a “Perfect 10” on the TipRanks’ Smart Score rating system, implying it is well-positioned to outperform market expectations.
Related News:
General Motors To Invest $1B To Produce Electric Cars In Mexico
Woven Acquisition To Help Slack Rival Microsoft And Google
Verizon Considers Selling Its Media Division For $5B – Report
