Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - RBC Capital maintained its Outperform rating and $208.00 price target on Biogen (NASDAQ:BIIB) on Thursday. The stock, currently trading at $135.93, appears undervalued according to InvestingPro analysis, which has identified multiple positive indicators for this prominent biotechnology player.
The investment firm expressed confidence in Biogen’s positioning heading into 2026, citing potential acceleration for Leqembi next year and upcoming catalysts from the company’s immunology and inflammation portfolio.
RBC Capital noted the possibility of near-term optionality from Eli Lilly (NYSE:LLY)’s presymptomatic Alzheimer’s disease trial results, which could impact Biogen’s outlook in the Alzheimer’s treatment space.
The firm acknowledged that business development activities may still be necessary to generate near-term growth, but indicated that Biogen’s management appears receptive to pursuing such opportunities.
RBC Capital highlighted Biogen’s current valuation at approximately 2 times sales and 8 times earnings, suggesting significant upside potential as the company’s turnaround strategy progresses to a more impactful stage.
In other recent news, Biogen has initiated several significant clinical trials and reported promising interim data for its treatments. The company commenced a Phase 3 trial for felzartamab, targeting primary membranous nephropathy, a rare kidney disease. This trial, known as PROMINENT, will involve approximately 180 adults and aims to assess the drug’s efficacy compared to tacrolimus. Additionally, Biogen has reported positive interim results from a Phase 1 study of salanersen for spinal muscular atrophy. The treatment showed promising outcomes, including motor milestone improvements in children previously treated with gene therapy.
Biogen has also launched the BRAVE study, a Phase 3 trial evaluating omaveloxolone in children with Friedreich ataxia, further expanding its focus on rare neurodegenerative disorders. Meanwhile, UBS has maintained a neutral rating on Biogen’s stock, citing cautious optimism about its Alzheimer’s disease pipeline. In contrast, H.C. Wainwright reiterated a buy rating, highlighting the potential of felzartamab in establishing a nephrology franchise. These developments reflect Biogen’s strategic focus on advancing treatments for rare diseases and expanding its therapeutic portfolio.
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