ABBV

AbbVie Inc

Healthcare


Presented:02/22/2017
Price:$61.36
Cap:$99.59B
Current Price:$191.86
Cap:$338.89B

Presented

Date02/22/2017
Price$61.36
Market Cap$99.59B
Ent Value$132.80B
P/E Ratio16.9x
Book Value$3.98
Div Yield0.04%
Shares O/S1,623.00M
Ave Daily Vol7,241,684
Short IntN/A

Current

Price$191.86
Market Cap$338.89B
AbbVie, Inc. is a research-based biopharmaceutical company. It engages in the discovery, development, manufacture and sale of a broad line of proprietary pharmaceutical products. The company's focused on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C and human immunodeficiency virus; neurological disorders, such as Parkinson's disease; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis; as well as other serious health conditions. The company was founded on January 1, 2013 and is headquartered in North Chicago, IL.

Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Celgene Corporation (CELG), Eli Lilly and Co (LLY)

Highlights

The presenter is long shares of AbbVie (ABBV) and believes the stock is undervalued at ~$61. He likened ABBV’s story to Celgene’s mid-to-high teens earnings growth profile (through 2020), strong new product life cycle, diverse revenue base, etc.; however, ABBV is five turns cheaper than Celgene on 2017 EPS forecasts (11x versus 16x, respectively). Given a robust pipeline and leading positions in immunology, virology, and oncology, he sees i) upside to near-term Street estimates (for 2017 - 2018); ii) a strong contribution from new product launches through 2020; and iii) a plethora of potential catalysts over the next 12 months collectively driving the stock higher over the next 12-18 months. Ultimately, ABBV should trade up to the mid-$70s (11x $6.90 of 2018 EPS), or even the mid-to-high $80s per share on a DCF basis (i.e., probability weighting the possible Humira outcomes).

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Idea Discussion

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