On Thursday, RBC Capital Markets adjusted its price target for Biogen (NASDAQ:BIIB), a prominent biotechnology firm, reducing the figure to $317 from the previous $326. The firm's analysts have decided to maintain an Outperform rating for the stock, despite the adjustments made to the price target.
The revision of the price target comes amid observations of positive developments concerning Biogen's newly launched products, including Skyclarys, Leqembi, and Zurzuvae. These launches are seen as promising, yet the company's foundational business is experiencing some challenges. The analyst notes that a more significant contribution from the new products may be necessary to reignite investor enthusiasm.
Despite the pressures on the base business, RBC Capital expresses continued confidence in the long-term growth prospects for Biogen. This optimism is supported by estimated peak sales of $9.2 billion for Leqembi and $1.7 billion for Skyclarys. Additionally, the expectation of near-term expense control measures is anticipated to help stabilize earnings in the interim.
The new price target of $317 is a result of updates to the financial model. The firm's analysis indicates that with current market expectations being relatively conservative, the stock presents a compelling value proposition. The Outperform rating suggests that RBC Capital Markets believes Biogen's stock will perform better than the average return of the stocks the firm covers over the next 12 to 18 months.
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