On Wednesday, Biogen Inc. (NASDAQ:BIIB), currently trading at $143.26 with a market capitalization of $20.9 billion, maintained its positive outlook from Oppenheimer, with the firm reiterating an Outperform rating and a $255.00 price target for the company's shares.
According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations. The endorsement follows a recent meeting with Biogen's management, during which several key strategies and priorities were discussed for the year 2025.
The company's commercial strategies are set to enhance the uptake of Leqembi, including alternative dosing schema and partnerships for the development of non-invasive diagnostics centered around brain biomarkers (BBM). With a robust gross profit margin of 75.6% and a strong financial health score rated as "GOOD" by InvestingPro, the successful launches of Zurzuvae and Skyclarys are expected to contribute to near-term revenue growth for Biogen.
Looking further ahead, Biogen is focusing on its pipeline, with anticipated regulatory filings and late-stage trial results that could support product launches post-2027. The firm also noted Biogen's disciplined approach to capital allocation, which could potentially lead to operating margin expansion.
The strategic business development (BD) strategy was highlighted as a key factor in potentially complementing Biogen's expertise in the fields of central nervous system (CNS) and immunology. This follows the company's 2024 acquisition of HI-Bio, with expectations of pursuing additional, though likely smaller, deals in the future.
Oppenheimer's commentary underscores Biogen's leadership position in Alzheimer's Disease (AD) treatment, the potential for strategic capital allocation, and the optionality provided by its pipeline. The firm appreciates the multifaceted approach Biogen is taking to maintain and grow its market position in the coming years.
In other recent news, Biogen Inc. has seen several significant developments. The company recently announced the appointment of Sean Godbout as Vice President, Chief Accounting Officer & Global Corporate Controller, effective March 1, 2025. This strategic shift in finance leadership comes as current CFO Michael McDonnell is set to retire on the same date.
In the realm of analyst adjustments, Biogen experienced a series of changes. RBC Capital Markets reduced its price target for Biogen to $231 but maintained an Outperform rating. Baird increased its price target to $300 following a positive recommendation from the European Medicines Agency's Committee for Medicinal Products for Human Use for lecanemab, an Alzheimer's treatment.
However, Piper Sandler downgraded Biogen from "Overweight" to "Neutral" and reduced the price target to $138, citing a challenging revenue outlook. BMO Capital Markets also downgraded Biogen to "Market Perform" and reduced its price target to $164, citing slower growth for Alzheimer's treatment, Leqembi, and other challenges.
Jefferies downgraded Biogen from Buy to Hold, reducing the price target to $180 due to concerns over Leqembi and a potential decline in Ocrevus royalties. Citi initiated Biogen coverage with a neutral rating and a $190 price target, reflecting a cautious stance on the company's financial outlook.
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