NEW YORK (TheStreet) -- AbbVie (ABBV) shares are up 2.54% to $67.78 in morning trading on Wednesday after analysts at JPMorgan resumed coverage on the company with an "overweight" rating and $75 price target.
The price target represents a potential 10.6% upside from the stock's current price.
The firm praised the company's $21 billion acquisition of Pharmacyclics (PCYC) which closed yesterday, raising their earnings growth expectations to 9% annually through 2020.
Analysts praised the company's arthritis treatment Humira, the world's highest selling drug, but noted the diversification of cash flows that will occur thanks to the integration of Pharmacyclics' lukemia treatment Imbruvica.
"We see Imbruvica rapidly becoming a standard of care in several hematology tumors and are forecasting ABBV's reported sales to increase to $4bn by 2020 driven primarily through uptake of existing indications," said analysts.
"In addition, we could see several billion dollars of upside to our long-term estimates for Imbruvica based on expanded use in DLBCL and FL. More broadly, we see ABBV with a leading hematology oncology franchise based on Imbruvica as well as venetoclax (bcl-2) and duvelisib (PI3K) and expect this portfolio to generate $5.2bn in 2020 sales (17% of total ABBV sales)," the firm said.
In separate news today, the company announced that it is accelerating its share buybacks following the acquisition of Pharmacyclics, repurchasing $5 billion in shares from Morgan Stanley (MS).
In March the company doubled its share repurchase authorization to $10 billion from $5 billion.