Asia FX cautious amid US govt shutdown; yen tumbles after Takaichi’s LDP win
Investing.com - Canaccord Genuity has reiterated its Buy rating and $220.00 price target on Biogen (NASDAQ:BIIB) stock, citing favorable valuation and an underappreciated pipeline. This target aligns with InvestingPro’s analysis, which indicates Biogen is currently undervalued, with the company maintaining a "GREAT" overall financial health score.
The research firm highlighted Biogen as a contrarian pick for 2025, noting that while the stock remains down approximately 3% year-to-date compared to S&P 500’s 12% gain and XBI’s 6% increase, it has recovered from its 52-week low reached in April 2025.
Canaccord pointed to Biogen’s price-to-earnings multiple of approximately 8x their 2026 estimated earnings per share, compared to the large cap biopharma group’s 13x multiple, though acknowledged the company does not pay dividends. InvestingPro data shows a current P/E ratio of 14.12x and an attractive free cash flow yield of 9%, suggesting potential value for investors. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The firm views recent quarterly performances as evidence of "ongoing solid defense on core franchises," with new product launches contributing positively and Leqembi for early Alzheimer’s disease potentially becoming a significant revenue driver over time.
Canaccord also expressed appreciation for management’s measured approach to business development, noting that Biogen’s pipeline is evolving toward "a nice mix of high-risk/high-reward neuro bets balanced by candidates on the immunology and rare disease sides" with several catalysts expected in 2026 and beyond.
In other recent news, Biogen reported second-quarter revenue of $2.65 billion, surpassing both Oppenheimer’s estimate of $2.29 billion and the consensus estimate of $2.32 billion. Following this strong performance, Biogen has raised its fiscal year 2025 guidance, projecting flat revenues at constant currency compared to fiscal year 2024. Additionally, Biogen and Eisai have initiated a rolling submission to the U.S. Food and Drug Administration for their Alzheimer’s treatment LEQEMBI IQLIK, which has been granted Fast Track Status. This submission includes a proposal for a weekly starting dose for patients with early Alzheimer’s disease. In terms of analyst actions, Oppenheimer reiterated an Outperform rating with a $205.00 price target, while H.C. Wainwright maintained a Buy rating, emphasizing Biogen’s promising lupus treatments. Piper Sandler adjusted its price target to $118.00, maintaining a Neutral rating, and Morgan Stanley lowered its target to $144.00, retaining an Equalweight rating. These developments reflect ongoing interest and analysis of Biogen’s performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.