On Thursday, TD Cowen reaffirmed its confidence in Biogen (NASDAQ:BIIB) shares, maintaining a Buy rating but lowering the price target to $275 from the previous $300. The adjustment follows Biogen's third-quarter financial report, which presented revenue aligning with forecasts and earnings per share surpassing expectations. The company also increased its earnings per share guidance for 2024.
Biogen's third-quarter performance indicated a steady launch trajectory for its Alzheimer's treatment, Leqembi, despite ongoing logistical and capacity challenges that are affecting its broader adoption. The company's other drug, Skyclarys, has achieved a $400 million run rate and is expected to continue growing, particularly in markets outside the United States.
The financial analysis by TD Cowen projects that Biogen will likely experience a return to growth, driven by the performance of Skyclarys and Leqembi. The firm anticipates a 2% revenue compound annual growth rate (CAGR) and a 10% earnings per share (EPS) CAGR for Biogen through 2030. This outlook underscores the potential for Biogen's portfolio to drive long-term value.
The reiterated Buy rating comes with the view that Biogen's strategic focus on its drug portfolio, particularly with the momentum around Leqembi and the growth of Skyclarys, positions the company favorably for future financial success. Despite the price target reduction, the overall sentiment toward Biogen's stock remains positive based on these growth expectations.
Biogen's share price will continue to be monitored by investors as the company works to overcome the adoption barriers for Leqembi and as it capitalizes on the growth opportunities for Skyclarys. The new price target reflects a more cautious but still optimistic valuation of the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.