Leerink Partners Starts Abbvie (ABBV) at Market Perform
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Leerink Partners initiates coverage on Abbvie (NYSE: ABBV) with a Market Perform rating and a price target of $70.00.
Analyst Geoffrey Porges commented, "Our initiation is based on a generally positive view of the company’s current business and near term prospects, but reflects significant uncertainty about the durability of its dominant franchise, Humira. Humira faces well known challenges from both branded and biosimilar entrants in the coming years, but we generally expect revenue to continue to grow through the end of the decade, notwithstanding many heart stopping moments and real and imaginary challenges from competitors via the courts, the patent office and the marketplace. This is the most significant uncertainty facing the company, and the biggest variable in our valuation analysis. Our base case assumes biosimilar entry in the US in 2020. If we incorporate biosimilar introduction in 2018, our valuation declines by $10-$17/share, and if we postpone it to 2022, it increases by $8/share (to $78). We forecast that Humira will grow from $16.4bn this year to $17.9bn in 2020. Our Humira revenue forecast is 0%-5% above consensus for the 2017-2020 period."
Shares of Abbvie closed at $60.14 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mizuho Securities Downgrades Community Health (CYH) to Underperform
- Needham & Company Reiterates Buy on TTM Technologies (TTMI) Following 3Q
- Needham & Company Raises Price Target on AXT, Inc. (AXTI) Following 3Q Beat and Guidance
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!