Biogen (BIIB) Stock: Why The Price Increased Today

By Amit Chowdhry ● Apr 18, 2022
  • The stock price of Biogen Inc (NASDAQ: BIIB) increased by over 0.9% pre-market today. This is why.

The stock price of Biogen Inc (NASDAQ: BIIB) increased by over 0.9% pre-market today. Investors are responding positively to a bullish research report.

Wells Fargo analyst Mohit Bansal upgraded Biogen from an “Equal-Weight” rating to an “Overweight” rating. And the company assigned a price target of $265.

“While the sentiment is at an all-time low, we looked at BIIB objectively to value their assets individually. This made us think that the company’s base-biz may be worth more than what Street thinks and we see value at $180-$200/sh in SoTP scenario and $185/ sh on DCF w/o pipeline,” wrote Bansal in a research note. “This is because investors are not valuing royalty streams coming to BIIB properly, which makes for 15% of current revenues and 40% of the valuation, by our math. Please ask for our SoTP. This makes us see very compelling risk/reward into BAN-2401 data in 2H’22. From where the stock is currently ($213/sh), we see $35/sh (~15%) downside risk but up to $135/sh (>60%) upside potential on the data. We think the stock would trade up to $265/sh assuming 50% probability into the data and that is our new target price (DCF Based).”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.