UBS reiterates Biogen stock neutral rating despite recent rally

UBS maintained its neutral rating and $119.00 price target on Biogen (NASDAQ:BIIB) stock despite the shares rebounding 18% from a 15-year low. Currently trading at $129.63, with a P/E ratio of 12.7, InvestingPro analysis suggests the stock is undervalued. The recovery stems from growing optimism about potential success in pre-symptomatic Alzheimer’s disease treatment.

The investment firm sees a potential upside case for Biogen’s Leqembi in pre-symptomatic Alzheimer’s, which could be bolstered by read-across data from Eli Lilly (NYSE:LLY)’s Trailblazer-3 study to Biogen’s AHEAD-3 and AHEAD-45 trials.

Despite recognizing the opportunity in pre-symptomatic Alzheimer’s treatment, UBS remains cautious, noting that Eli Lilly has not confirmed interim analyses for 2025, while Biogen hasn’t committed to examining interim data before its scheduled 2028 readout.

UBS also highlighted the upcoming GLP-1 data readouts in Alzheimer’s disease, specifically mentioning Novo Nordisk (NYSE:NVO)’s EVOKE and EVOKE+ trials, which are expected to generate results in late 2025.

Biogen’s recent stock performance reflects investor interest in its Alzheimer’s pipeline, though UBS maintains its neutral stance based on the timeline uncertainties and competitive landscape in the therapeutic area.

In other recent news, Biogen has been the focus of several analyst updates and strategic developments. The company reported first-quarter 2025 revenues of $2.43 billion and an adjusted earnings per share of $3.02, surpassing both Canaccord Genuity’s and consensus estimates. Despite this strong financial performance, Canaccord lowered its price target for Biogen to $220, maintaining a Buy rating, as analysts adjust expectations amid competitive pressures. H.C. Wainwright also maintained a Buy rating but reduced its price target to $187, citing a shift in neurologists’ attitudes towards Biogen’s Alzheimer’s drug, Leqembi. Goldman Sachs reaffirmed its Buy rating with a $196 price target, noting Eisai’s stronger-than-expected sales for Leqembi, though projecting a cautious outlook for future sales.

Biogen’s strategic focus on nephrology, particularly with the potential of felzartamab, received positive attention from H.C. Wainwright, highlighting promising Phase 2 results. Meanwhile, Entrada Therapeutics announced the appointment of Dr. Maha Radhakrishnan to its Board of Directors, emphasizing her experience in global drug development as the company advances its Duchenne muscular dystrophy programs. These recent developments underscore Biogen’s ongoing efforts to navigate challenges in the competitive biotech landscape while pursuing new growth opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.