UBS analyst Carter Gould upgraded Biogen (BIIB) to Buy and raised his price target for the shares to $410 from $318. The stock closed yesterday down $5.89 to $352.59.
The market is underappreciating Biogen’s pipeline opportunity and the potential for additional assets to be added through acquisitions, Gould tells investors in a research note. He thinks both together could add $45 per share. The analyst sees “reduced debate over the core pillars” of Biogen’s valuation or 2018 earnings estimates with the multiple sclerosis businesses stabilized, clarity on Spinraza growth over 2018, and aducanumab pivotal Alzheimer’s data weighted to 2019/2020.
As the company’s mid-stage pipeline comes into focus, Gould believes the stock’s risk/reward skews positively.
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