-- AbbVie (ABBV) is seen maintaining durable growth into the mid-2030s as investor concerns on competition eroding its business are "overdone," BofA Securities said in a note Thursday.
The brokerage said the growth outlook for the company's Skyrizi medication remains solid, with no evidence of slowing demand across psoriasis or inflammatory bowel disease. Johnson & Johnson's (JNJ) IL-23 products appear to be category expanding rather than taking market share from AbbVie, according to the note.
During its earnings call, AbbVie stated that Skyrizi's intellectual property extend into the mid-2030s and beyond, which the brokerage believes is a potential upside given the company's history of successfully defending drug patents.
Compared with its large-cap pharmaceutical peers, AbbVie is projected to grow revenue at about 6% per year over 5 and 7 years, versus a peer average of 3% to 4%, BofA said. At its current reasonable valuation, the company offers "one of the best" growth profiles in the industry, with room for upside on the success of its early and mid-pipeline efforts, the brokerage said.
BofA upgraded AbbVie to buy from neutral, and raised the price target to $234 from $226.
Shares of AbbVie were up more than 4% in Thursday trading.
Price: $212.77, Change: $+8.88, Percent Change: +4.36%