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On Tuesday, Biogen Inc. (NASDAQ:BIIB) saw its price target modestly reduced by Bernstein SocGen from $160.00 to $159.00. The firm retained its Market Perform rating on the biotechnology company's shares. Currently trading at $137.33, near its 52-week low of $128.51, Biogen has seen seven analysts revise their earnings expectations downward for the upcoming period, according to InvestingPro data. The adjustment followed a review of Biogen's fourth-quarter 2024 performance, leading to a revised revenue forecast for 2025 and beyond.
In a recent update, Bernstein SocGen analysts cited a 2% reduction in their 2025 revenue estimate for Biogen. The revision stems from a more cautious outlook for the company's multiple sclerosis (MS) treatments and expectations for Skyclarys. The company's overall financial health remains GOOD according to InvestingPro analysis, with a P/E ratio of 12.28 and strong free cash flow generation. Despite these changes, the firm's sales forecast for the Alzheimer's treatment Leqembi remains unchanged. However, they have adjusted the expected Leqembi margin for 2025 to 35% to reflect collaboration revenues as a percentage of in-market sales.
The analysts also revised Biogen's research and development (R&D) spending projections to align with management's commentary. The new estimates for revenue and earnings per share (EPS) are consistent with the guidance range provided by Biogen's management team. The price target reduction to $159 is solely based on these estimate changes, with Bernstein SocGen making no alterations to their target multiples, which remain at 8.7 times price-to-earnings (P/E) and 2.7 times enterprise value to revenue (EV/R), both based on projected 2026 figures.
Biogen's financial performance and future projections are under scrutiny as the company navigates the competitive and evolving biotech landscape. The adjustments made by Bernstein SocGen reflect the challenges faced by Biogen in its MS business and the cautious optimism surrounding its Alzheimer's drug, Leqembi.
Investors are keeping a close eye on Biogen's strategic moves and financial health, as the company continues to invest in research and development while managing the commercialization of its current product lineup. With analyst price targets ranging from $135 to $342, the market's response to the revised price target and rating will be a key indicator of investor sentiment towards Biogen's prospects. For a comprehensive analysis of Biogen's financial health, valuation metrics, and growth potential, access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Biogen has been the subject of several analyst adjustments. TD Cowen, RBC Capital Markets, Truist Securities, H.C. Wainwright, and BMO Capital Markets have all revised their price targets for the company, primarily due to concerns about future revenue and the company's ability to offset the decline in its Multiple Sclerosis (MS) business. Despite these concerns, all firms maintained their respective ratings on Biogen's stock.
TD Cowen analysts reduced their price target to $200, citing a declining MS franchise and slower-than-anticipated new product launches. RBC Capital Markets lowered its target to $225, highlighting challenges with Biogen's current product lineup and uncertainty regarding its external business development. Truist Securities adjusted its price target to $210, noting the company's reliance on the growth of Leqembi, its treatment for Alzheimer's disease. H.C. Wainwright cut its target to $241 due to a re-evaluation of revenue estimates, while BMO Capital Markets reduced its target to $139, expressing concerns over Biogen's revenue trajectory and challenges in achieving near-term sustained growth.
These recent developments reflect the various challenges Biogen faces in its growth strategy. The focus remains on the company's efforts to navigate its MS business's challenges while capitalizing on the potential of Leqembi and other pipeline assets. Investors will be watching closely for Biogen's next moves, particularly regarding the uptake of Leqembi and the company's ability to innovate and grow amidst the shifting dynamics of the pharmaceutical industry.
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